MEDDELELSE FRA KOMMISSIONEN TIL EUROPA-PARLAMENTET, RÅDET OG REVISIONSRETTEN DEN EUROPÆISKE UNIONS KONSOLIDEREDE ÅRSREGNSKAB FOR REGNSKABSÅRET 2024

EN EN
EUROPEAN
COMMISSION
Brussels, 25.6.2025
COM(2025) 359 final
COMMUNICATION FROM THE COMMISSION
TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND
THE COURT OF AUDITORS
CONSOLIDATED ANNUAL ACCOUNTS OF THE EUROPEAN UNION
FOR THE FINANCIAL YEAR 2024
Offentligt
KOM (2025) 0359 - Meddelelse
Europaudvalget 2025
CONTENTS
FINANCIAL HIGHLIGHTS OF THE YEAR ....................................................... 2
NOTE ACCOMPANYING THE CONSOLIDATED ACCOUNTS.............................. 34
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES ........... 35
BALANCE SHEET ................................................................................ 37
STATEMENT OF FINANCIAL PERFORMANCE............................................. 38
CASHFLOW STATEMENT ...................................................................... 39
STATEMENT OF CHANGES IN NET ASSETS ............................................. 40
NOTES TO THE FINANCIAL STATEMENTS ............................................... 41
BUDGETARY IMPLEMENTATION REPORTS AND EXPLANATORY NOTES ...........137
GLOSSARY ..........................................................................................205
LIST OF ABBREVIATIONS ......................................................................209
Annual accounts of the European Union 2024
2
FINANCIAL HIGHLIGHTS OF THE YEAR
The objective of this section on financial highlights, which has been prepared on the basis of the
principles outlined in the IPSASB Recommended Practice Guideline (RPG) 2 ‘Financial Statement
Discussion and Analysis’ is to assist readers in understanding how the operational, financial and
investment activities of the EU are reflected in the different elements of the consolidated financial
statements of the EU. The information presented in this section has not been audited.
Please note that due to the rounding of figures into millions of euro, some financial data in the tables
below may appear not to add up.
Annual accounts of the European Union 2024
3
CONTENTS
1. KEY FIGURES AND HIGHLIGHTS OF THE YEAR ...............................................4
2. THE 2021-2027 MULTIANNUAL FINANCIAL FRAMEWORK, NextGenerationEU
AND SUPPORT TO UKRAINE ........................................................................6
3. NGEU IMPLEMENTATION ............................................................................9
3.1. Overview ...........................................................................................9
3.2. Disbursements of non-repayable support under the RRF
(including REPowerEU).........................................................................9
3.3. Disbursements of loans under the RRF (including REPowerEU).................. 10
3.4. NGEU contributions to other programmes under the EU budget................. 10
4. BUDGETARY CONTINGENT LIABILITIES ...................................................... 11
4.1. Borrowing and lending activities .......................................................... 11
4.2. Budgetary guarantees........................................................................ 18
4.3. Common Provisioning Fund................................................................. 19
5. FINANCIAL STATEMENTS ANALYSIS ........................................................... 20
5.1. Revenue .......................................................................................... 20
5.2. Expenses ......................................................................................... 21
5.3. Assets ............................................................................................. 21
5.4. Liabilities ......................................................................................... 24
5.5. Net assets........................................................................................ 25
6. SUMMARY OF BUDGET IMPLEMENTATION ................................................... 26
6.1. Revenue .......................................................................................... 26
6.2. Expenditure...................................................................................... 27
7. EU POLITICAL AND FINANCIAL FRAMEWORK, GOVERNANCE AND
ACCOUNTABILITY.................................................................................... 30
7.1. Political and financial framework .......................................................... 30
7.2. Governance and accountability ............................................................ 31
Annual accounts of the European Union 2024
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1. KEY FIGURES AND HIGHLIGHTS OF THE YEAR
Consolidated financial statements
The consolidated financial statements of the EU comprise more than 50 entities (including the European
Parliament, the Council, the Commission and EU agencies). They are prepared on the basis of accrual-
based accounting rules adopted by the Accounting Officer of the Commission, these rules being based
on International Public Sector Accounting Standards (IPSAS).
As shown in the summarised balance sheet below and further detailed in the Financial Statements
Analysis (Section 5), the most notable features of the 2024 EU consolidated financial statements were
an increase in borrowing related to the implementation of NextGenerationEU and the additional financial
support provided to Ukraine:
EUR billion
2024 2023 Change
ASSETS
Financial assets 328.3 285.4 43.0
Pre-financing 78.9 91.7 -12.8
Receivables 31.7 35.2 -3.5
Cash and cash equivalents 63.2 39.6 23.6
Property, plant and equipment, and other assets 16.3 15.8 0.5
Total 518.5 467.7 50.8
LIABILITIES
Post-employment benefits 93.1 90.8 2.3
Financial liabilities 601.9 458.4 143.5
Payables 55.4 50.5 4.9
Accruals 67.1 76.8 -9.7
Other liabilities 9.8 3.3 6.5
Total 827.3 679.8 147.5
NET ASSETS
Reserves 1.0 1.1 -0.1
Amounts to be called from Member States (309.8) (213.2) -96.6
Total (308.8) (212.2) -96.7
see Financial Statement Analysis, Section 5
Annual accounts of the European Union 2024
5
Key developments in 2024
Continuing the successful track record of issuing EU-Bonds, EU-Bills and NGEU Green Bonds
see Section 4
Delivering on the NGEU objectives Providing financial assistance to Ukraine
see Section 3 see Section 4
Annual accounts of the European Union 2024
6
2. THE 2021-2027 MULTIANNUAL FINANCIAL
FRAMEWORK, NextGenerationEU AND SUPPORT
TO UKRAINE
The EU’s long-term budget for 2021-2027, together with the NextGenerationEU (NGEU) recovery
instrument, amounts to EUR 2.028 trillion in current prices (EUR 1.8 trillion in 2018 prices).
The package consists of the long-term budget, the 2021-2027 multiannual financial framework (MFF),
made up of EUR 1.221 trillion in current prices (EUR 1.081 trillion in 2018 prices), combined with the
temporary NGEU recovery instrument, of an initial amount of up to EUR 806.9 billion in current prices
(EUR 750 billion in 2018 prices). This initial amount has been adjusted to EUR 712 billion, as the total
available loan support was not fully requested by the Member States.
Revision of the EU budget 2021-2027
Since the adoption in 2020 of the long-term EU budget for 2021-2027, the EU has faced a series of
unprecedented and unforeseen crises, including Russia’s war of aggression against Ukraine and its
consequences, the acceleration of inflation and interest rates, as well as migration and external
challenges such as the Middle East conflict. Tackling these multiple challenges has stretched the
resources of the EU budget to the limit, hampering its ability to address even the most pressing
challenges. To ensure that the EU budget can continue to deliver on its key objectives, the European
Commission proposed in June 2023 to strengthen the EU's long-term budget.
On 1 February 2024, EU leaders endorsed all of the priorities set out in the Commission’s proposal and
agreed on the first-ever revision of the EU's long-term budget – which was also approved by the
European Parliament on 27 February 2024. Key elements include:
— critical support for Ukraine: a new Ukraine Facility, based on grants, loans and guarantees, with a
total capacity of EUR 50 billion over the period 2024-2027, will address Ukraine's immediate
needs, reconstruction and modernisation on its path towards the EU;
— strengthening sovereignty and competitiveness: the Strategic Technologies for Europe Platform
(STEP) will boost the EU's long-term competitiveness in critical technologies, digital and deep
tech, clean tech and biotech, with new flexibilities and incentives for cohesion funding and the
Recovery and Resilience Facility, and a EUR 1.5 billion top-up to the European Defence Fund;
— further action on migration and external challenges: an increase of EUR 9.6 billion will support
the internal and external dimensions of migration and help partners in the Western Balkans,
southern neighbourhood and beyond;
— a stronger response to unforeseen crises: to enable the EU budget to continue to respond to
unforeseen circumstances – such as the energy crisis, food crises and the aftermath of Russia’s
war amid rising inflation and interest costs – the Flexibility Instrument will be reinforced with an
additional EUR 2 billion, while the ceiling of the Emergency Aid Reserve will be increased by EUR
1.5 billion and split into two separate instruments: the European Solidarity Reserve and the
Emergency Aid Reserve;
— more crisis resilience: a three-step emergency mechanism and a new instrument will provide
clarity on the budgetary mechanisms for financing the costs associated with NextGenerationEU;
— the revision will be financed through a combination of new resources and redeployment within the
EU budget. This will allow the EU to continue to address the most pressing priorities while
minimising the impact on national budgets, for the benefit of people in the EU and beyond.
The revision entered into force on 1 March 2024 and applies retroactively to the EU budget as of 1
January 2024. The impact of the revision on the 2024 budget was included through amending budget No
1/2024, while the longer-term impact is reflected in the 2025 budget and the financial programming for
2026 and 2027.
Annual accounts of the European Union 2024
7
NextGenerationEU
With an initial budget of up to EUR 806.9 billion, NGEU is designed to help repair the immediate economic
and social damage brought about by the COVID-19 pandemic, and help build a post-COVID-19 Europe
that is greener, more digital, more resilient and more able to face current and forthcoming challenges.
The majority of the funds are channelled through the Recovery and Resilience Facility (RRF). Part of the
funds, up to EUR 338.0 billion, are provided in the form of non-repayable support, or grants. The other
part, up to EUR 385.8 billion, is used to provide loans from the EU to individual Member States.
The deadline for Member States to request loans expired in August 2023, meaning that EUR 94.9 billion
in loans can no longer be disbursed. As a result, the total amount for loans now stands at
EUR 290.9 billion, and the adjusted total envelope for non-repayable support and loans stands at
EUR 712 billion. These loans will only start to be repaid by the Member States that received them after
the end of the current MFF period, and repayments will continue over an extended period of time (from
2032 to 2054, see Section 3.3). NGEU will also reinforce the following EU programmes and policies:
— the Cohesion policy under the recovery assistance for cohesion and the territories of Europe
(REACT-EU), to help address the economic consequences of COVID-19 in the first years of the
recovery;
— the Just Transition Fund, to guarantee that the transition to climate neutrality works for all;
— the European Agricultural Fund for Rural Development, to further support farmers;
— InvestEU, to support the investment efforts of our businesses;
— Horizon Europe, to make sure the EU has the capacity to fund more excellence in research;
— RescEU, to safeguard the capacity of the EU Civil Protection Mechanism to respond to large-scale
emergencies.
In addition, RRF grants are now supplemented by the inclusion of REPowerEU measures, also financed by
Emissions Trading Scheme (ETS) revenues and Brexit Adjustment Reserve (BAR) allocations, together
with NGEU allocations. Similarly, the RRF loans are contributing to REPowerEU purposes. Please see
Section 3 for further detailed information on the NGEU implementation and Section 4 on the borrowing
via the unified funding approach.
Support to Ukraine
Since the beginning of Russia’s war of aggression against Ukraine, the EU budget has massively stepped
up to support the EU’s crisis response in Ukraine on all fronts. More concretely, as part of a ‘Team
Europe’ approach, the EU, its Member States and European financial institutions, had by the end of 2024
mobilised over EUR 130 billion in overall support for Ukraine and its people, in a clear expression of the
EU’s continued solidarity. This includes:
— EUR 64.4 billion in financial assistance, budget support and humanitarian assistance, enabled by
the EU budget and coming directly from EU Member States in the form of grants, loans and
guarantees (of which, EUR 19.6 billion was mobilised throughout 2024 under all three pillars of
the Ukraine Facility in the form of loans, non-repayable support and budgetary guarantees);
— EUR 47.3 billion in military assistance provided directly by EU Member States, including
EUR 6.1 billion through the European Peace Facility (off-budget instrument);
— EUR 1.5 billion made available from the proceeds stemming from frozen and immobilised Russian
sovereign assets (windfall profits); and
— EUR 17 billion made available by the EU and its Member States to support people fleeing Ukraine.
Annual accounts of the European Union 2024
8
Political priorities for the 2024-2029 Commission
The political priorities of the European Commission are set out in the political guidelines set by its
President. Under President von der Leyen, the Commission, which took office on 1 December 2024, will
focus on the following seven key priorities:
A new plan for Europe’s sustainable prosperity and competitiveness
Europe as a continent of economic growth, enterprise and innovation by ensuring
competitiveness, prosperity and fairness.
A new era for European defence and security
Meeting Europe’s security and defence challenges, and enhancing preparedness and
crisis management.
Supporting people, strengthening our societies and our social model
Promoting social fairness, increasing solidarity in our society, and ensuring equal
opportunities for all.
Sustaining our quality of life: Food security, water and nature
Building a competitive and resilient agriculture and food system, safeguarding
biodiversity, and preparing for a changing climate.
Protecting our democracy, upholding our values
Putting citizens at the heart of our democracy to empower all to help shape the future
of our European Union.
A global Europe: Leveraging our power and partnerships
Focusing on our wider neighbourhood to tackle global challenges and promote peace,
partnerships, and economic stability.
Delivering together and preparing our European Union for the future
A modern and reinforced EU budget, and ambitious reform agenda to deliver on our
goals.
Annual accounts of the European Union 2024
9
3. NGEU IMPLEMENTATION
3.1. Overview
At the end of 2024, the Commission had disbursed a total of EUR 373.0 billion in financial support. The
majority of this amount, EUR 306.1 billion, was disbursed under the RRF (including support for
REPowerEU reforms and investments), with EUR 197.5 billion disbursed as non-repayable support and
EUR 108.7 billion disbursed as financial loan support. A further EUR 66.9 billion (net of recoveries) was
disbursed as MFF payments under existing programmes.
3.2. Disbursements of non-repayable support under the
RRF (including REPowerEU)
The total non-repayable support approved and legally committed under the 27 Member States’ recovery
and resilience plans amounts to EUR 359.5 billion. On 31 December 2024 the budgetary commitments
amounted to EUR 358.9 billion. At the end of 2024, the Commission had disbursed a total of EUR 197.5
billion of non-repayable support to 26 Member States:
EUR billion
Member
State
Total
value of
grants
Budgetary
commitments
31.12.2024*
Total
disbursed
31.12.2024
Austria 4.0 4.0 1.2
Belgium 5.0 4.9 1.5
Bulgaria 5.7 5.7 1.4
Croatia 5.8 5.8 3.7
Cyprus 1.0 1.0 0.4
Czechia 8.4 8.4 4.2
Denmark 1.6 1.6 1.0
Estonia 1.0 1.0 0.5
Finland 1.9 1.9 0.5
France 40.3 40.3 30.9
Germany 30.3 30.3 19.8
Greece 18.2 18.2 8.6
Hungary 6.5 6.5 0.1
Ireland 1.2 1.1 0.3
Italy 71.8 71.8 46.4
Latvia 2.0 2.0 0.8
Lithuania 2.3 2.3 1.1
Luxembourg 0.2 0.1 0.0
Malta 0.3 0.3 0.2
Netherlands 5.4 5.3 1.3
Poland 25.3 25.3 7.3
Portugal 16.3 16.3 8.5
Romania 13.6 13.6 5.8
Slovakia 6.4 6.4 3.5
Slovenia 1.6 1.6 0.7
Spain 79.9 79.9 48.0
Sweden 3.4 3.4 –
Total 359.5 358.9 197.5
*
Budgetary commitments take into account all decommitments including those related to commitments made
before 2024. Of the total budgetary commitments, EUR 2.5 billion was committed in 2024.
During 2024, the Commission disbursed non-repayable support totalling EUR 55.9 billion. The main
disbursements were to Germany (EUR 13.5 billion), Spain (EUR 10.9 billion), France (EUR 7.5 billion),
Poland (EUR 6.8 billion) and Italy (EUR 5.5 billion).
Annual accounts of the European Union 2024
10
3.3. Disbursements of loans under the RRF
(including REPowerEU)
The total financial loan support approved under the plans amounts to EUR 290.9 billion. The whole
amount is covered by signed loan agreements. At the end of 2024, the Commission had disbursed
EUR 108.7 billion in financial loan support to 13 Member States:
EUR billion
Member State
Total
granted
Total
signed at
31.12.2024
Total
disbursed
at 31.12.2024
Total
repaid
at 31.12.2024
Total
outstanding
at 31.12.2024
Belgium 0.2 0.2 0.0 0.0 0.0
Croatia 4.3 4.3 0.8 0.0 0.8
Cyprus 0.2 0.2 0.0 0.0 0.0
Czechia 0.8 0.8 0.2 0.0 0.2
Greece 17.7 17.7 9.6 0.0 9.6
Hungary 3.9 3.9 0.8 0.0 0.8
Italy 122.6 122.6 75.7 0.0 75.7
Lithuania 1.6 1.6 0.8 0.0 0.8
Poland 34.5 34.5 13.5 0.0 13.5
Portugal 5.9 5.9 2.9 0.0 2.9
Romania 14.9 14.9 3.7 0.0 3.7
Slovenia 1.1 1.1 0.4 0.0 0.4
Spain 83.2 83.2 0.3 0.0 0.3
Total 290.9 290.9 108.7 0.0 108.7
During 2024, the Commission provided new financial loan support for an amount of EUR 29.4 billion. The
main disbursements were to Italy (EUR 14.7 billion), Poland (EUR 9.0 billion), Greece (EUR 2.3 billion)
and Portugal (EUR 1.2 billion). According to the loan agreements, the Member States will repay 5% of the
disbursed amounts every year, starting 10 years after the disbursement date. This results in a repayment
period from 2032 to 2054 for the loans disbursed up until 31 December 2024.
3.4. NGEU contributions to other programmes
under the EU budget
At the end of 2024, the total amount of net payments disbursed to other programmes under the MFF
stood at EUR 66.9 billion. This contribution, which is net of recoveries, mainly related to REACT-EU which
finances the European Regional Development Fund (ERDF) and the European Social Fund (ESF, including
FEAD):
EUR billion
MFF-Programme
Total
allocation
Total
net commitments
31.12.2024
Total
net payments
31.12.2024
REACT-EU 50.6 50.6 46.3
- of which ERDF 30.0 30.0 28.1
- of which ESF (incl. FEAD) 20.6 20.6 18.2
Just Transition Fund 10.9 10.8 6.3
Rural Development (EAFRD) 8.1 8.1 4.8
InvestEU 6.1 6.1 3.8
Horizon Europe 5.4 5.4 4.5
RescEU 2.0 2.0 1.3
Total 83.1 82.9 66.9
During 2024, the Commission disbursed EUR 24.6 billion in payments to other MFF programmes.
Included in this amount were payments relating to REACT-EU (EUR 14.9 billion, of which EUR 7.1 billion
under the ERDF and EUR 7.8 billion under the ESF, including FEAD), the Just Transition Fund (EUR 6.0
billion), Rural Development (EUR 1.5 billion), InvestEU (EUR 1.2 billion), Horizon Europe (EUR 0.6
billion), RescEU (EUR 0.3 billion).
Annual accounts of the European Union 2024
11
4. BUDGETARY CONTINGENT LIABILITIES
In the recent years, the EU has increasingly used financial instruments (such as loans, guarantees and
equity investments), as a means to implement its policies and pursue EU objectives. For example, the
loans by the EU to its Member States or partner countries aim at restoring financial stability or promoting
economic recovery from crisis situations. The main objective of the EU guarantee programmes is boosting
investments and enhancing access to finance to address market failures in the key policy areas.
When the EU provides support in the form of loans or guarantees, it expects a high value added from its
financial contribution. This is because, in contrast to traditional non-repayable methods of budget
implementation such as giving grants or subsidies, for each euro spent from the EU budget the final
beneficiary receives more than the nominal amount of the EU financial support due to the so-called
leverage effect.
While the EU expects that expenses incurred will be lower than the amount of funding provided, the EU
budget may still incur losses, when some events – that are not fully in the control of the EU – occur. This
is the case for the programmes where the EU undertakes borrowings to finance loans to Member States
and third countries (see section 4.1 below) and when it issues guarantees to financial institutions (see
section 4.2 below). As losses due to non-repayment by final beneficiaries are not likely to materialise in
full, the EU does not hold assets for the entirely of those potential liabilities1
, but only up to the level
necessary to cover expected losses and a sufficient safety buffer for unexpected losses. Nevertheless,
would the losses occur above the assets provisioned, they would be covered by the Member States
through future EU budgets. In this sense they create ‘budgetary contingent liabilities’ for the EU budget.
The EU regularly monitors the sustainability of its contingent liabilities and the adequacy of the assets
provisioned held in the Common Provisioning Fund (CPF)2
(see section 4.3 below).
At the end of 2024, the EU budgetary contingent liabilities totalled EUR 408.9 billion, of which
EUR 298.9 billion related to the outstanding loans to sovereigns (EUR 296.4 billion nominal and
EUR 2.5 billion accrued interest) and EUR 109.9 billion to the maximum amounts (ceilings) of the
guarantees issued. The assets provisioned amounted to EUR 23.4 billion.
The EU also incurs other liabilities, which are not contingent in nature, but which – due to their long-term
nature – will only be financed by the Member States through future budgets. This mainly relates to the
pension liability (EUR 93.1 billion as at 31 December 2024) and to the unified funding approach
borrowings that financed RRF/REPowerEU grants and some other MFF programmes (EUR 264.4 billion as
at 31 December 2024, see sections 3.2 and 3.4).
4.1. Borrowing and lending activities
4.1.1. Borrowing
The Union borrows by issuing securities on the international capital markets. The EU budget, ultimately,
guarantees all the Union borrowings. Until 2020, borrowings were used only to finance lending activities,
see section 4.1.2. Following the introduction of the NGEU instrument, borrowings are now also used to
finance non-repayable support, see section 3.2.
1
Except for some guarantees provided under the financial instruments programmes of previous MFFs, which were
fully financed or provisioned from EU budget.
2
See ‘Report from the Commission to the European Parliament and the Council on financial instruments, budgetary
guarantees, financial assistance and contingent liabilities’ issued annually by the Commission.
Annual accounts of the European Union 2024
12
The funding approach
Back-to-back Unified funding
Until 2020, the Commission was following a ‘back to back’ approach, issuing a dedicated bond to fund
a specific loan agreement. It was transferring the money directly to the beneficiary country on the same
terms and conditions (interest rate, maturity). The timing, volume and maturity of bond issuances were
determined by the needs of the beneficiary.
For the NGEU instrument, the Commission uses a diversified, pooled funding approach where the
borrowings are not directly funding specific disbursements. Instead, the debt is issued according to
semi-annual funding plans, with long term bonds and short term bills. The Commission uses auctions and
syndications to issue these securities. It then passes on the costs, in line with the cost allocation
methodology agreed with Member States3
, to the beneficiaries for the loans and to the EU budget for the
non-repayable support. This pooled funding approach offers a more flexible and coherent borrowing and
lending activity. It also offers better funding costs and allows the design of a better risk and compliance
framework. This funding flexibility also requires a liquidity buffer for an efficient liquidity management.
Following the Regulation (EU, Euratom) 2022/2434 of the European Parliament and of the Council4
in
December 2022, the Commission can use this approach for all future borrowings. In this way, the Macro
Financial Assistance (MFA)+ for Ukraine, the Ukraine Facility and other future lending programmes can
benefit from this flexible and cost-efficient debt management, creating a unified funding approach for all
EU borrowings.
During 2024, the outstanding borrowings of the EU increased by EUR 142.8 billion, bringing the nominal
outstanding amount to EUR 601.3 billion at 31 December 2024. This amount includes EUR 68.2 billion of
NGEU Green Bonds. These issuances are underpinned by the NGEU Green Bond Framework, which is
aligned with the Green Bond Principles of the International Capital Market Association (ICMA)5
. Funds
raised through NGEU Green Bonds, finance climate-relevant measures from the national Recovery and
Resilience plans (RRPs) under the Recovery and Resilience Facility (RRF).
3
Commission Implementing Decision (EU) 2022/9701.
4
Regulation (EU, Euratom) 2022/2434 of the European Parliament and of the Council of 6 December 2022 amending
Regulation (EU, Euratom) 2018/1046 as regards the establishment of a diversified funding strategy as a general
borrowing method (OJ L 319, 13.12.2022, p. 1).
5
European Commission, Directorate-General for Budget, Green bonds – Impact and allocation report – NGEU report
2023, Publications Office of the European Union, 2023, https://data.europa.eu/doi/10.2761/302803.
Annual accounts of the European Union 2024
13
The table below shows the repayment schedule for the outstanding EU borrowings at 31 December 2024:
EUR billion
UNIFIED
FUNDING
BACK-TO-BACK BORROWINGS TOTAL
SURE EFSM MFA BOP EURATOM
2025 41.1 8.0 2.4 0.0 0.2 - 51.8
2026 33.0 8.0 6.2 0.1 - - 47.4
2027 32.6 - 3.0 0.2 - - 35.9
2028 30.6 10.0 4.1 0.2 - - 44.9
2029 27.6 8.1 1.4 0.9 - 0.1 38.1
2030 15.4 10.0 - 0.1 - - 25.5
2031 29.0 - 7.3 1.2 - 0.1 37.5
2032 18.4 - 3.0 0.7 - 0.1 22.1
2033 11.8 - 2.1 0.5 - - 14.4
2034 33.1 - 0.0 0.7 - - 33.8
2035 - 8.5 2.0 2.0 - - 12.5
2036 - 9.0 5.8 1.3 - - 16.1
2037 18.4 8.7 - 0.9 - - 28.1
2038 14.3 - 1.8 0.3 - - 16.5
2039 12.0 - - 0.1 - - 12.1
2040 - 7.0 - 0.5 - - 7.5
2041 16.0 - - - - - 16.0
2042 12.0 - 3.0 2.0 - - 17.0
2043 12.0 - - - - - 12.0
2044 12.0 - - - - - 12.0
2045 - - - - - - 0.0
2046 - 5.0 - - - - 5.0
2044 - 6.0 - - - - 6.0
2048 14.0 - - - - - 14.0
2049 - - - - - - 0.0
2050 12.0 10.0 - - - - 22.0
2051 14.0 - - - - - 14.0
2052 10.9 - - 0.5 - - 11.4
2053 15.3 - - 2.5 - - 17.8
2054 10.0 - - - - - 10.0
Total 445.7 98.4 42.0 14.7 0.2 0.3 601.3
The ‘unified funding’ finances the NGEU loans and non-repayable support as well as the Ukraine Facility
and MFA loans signed as of 2023.
Annual accounts of the European Union 2024
14
4.1.2. Lending
The Commission provides bilateral loans in accordance with decisions of the European Parliament and of
the Council. In 2024, the Commission, acting on behalf of the EU, operates seven main programmes
under which it may grant loans:
— SURE assistance (Support to mitigate Unemployment Risks in an Emergency);
— European Financial Stabilisation Mechanism (EFSM) assistance;
— Macro-Financial Assistance (MFA);
— Balance of Payments (BOP) assistance;
— Euratom;
— Ukraine Facility and
— NGEU (RRF and REPowerEU) see section 3.3.
Annual accounts of the European Union 2024
15
At 31 December 2024, the nominal amount of the loans, were:
EUR billion
Total
signed
Total undrawn at
year-end
Total disbursed
at year-end
Outstanding at
year-end
SURE
Belgium 8.2 - 8.2 8.2
Bulgaria 1.0 - 1.0 1.0
Croatia 1.6 - 1.6 1.6
Cyprus 0.6 - 0.6 0.6
Czechia 4.5 - 4.5 4.5
Estonia 0.2 - 0.2 0.2
Greece 6.2 - 6.2 6.2
Hungary 0.7 - 0.7 0.7
Ireland 2.5 - 2.5 2.5
Italy 27.4 - 27.4 27.4
Latvia 0.5 - 0.5 0.5
Lithuania 1.1 - 1.1 1.1
Malta 0.4 - 0.4 0.4
Poland 11.2 - 11.2 11.2
Portugal 6.2 - 6.2 6.2
Romania 3.0 - 3.0 3.0
Slovakia 0.6 - 0.6 0.6
Slovenia 1.1 - 1.1 1.1
Spain 21.3 - 21.3 21.3
98.4 - 98.4 98.4
EFSM
Ireland 22.5 - 22.5 19.7
Portugal 24.3 - 24.3 22.3
46.8 - 46.8 42.0
MFA
Albania 0.2 - 0.2 0.2
Armenia 0.1 - 0.1 0.1
Bosnia Herzeg. 0.3 - 0.3 0.1
Georgia 0.1 - 0.2 0.1
Jordan 1.1 - 1.1 1.1
Kosovo 0.1 - 0.1 0.1
Kyrgyz Rep. 0.0 - 0.0 0.0
Moldova 0.4 0.0 0.4 0.4
Montenegro 0.1 - 0.1 0.1
North Macedonia 0.3 0.1 0.2 0.2
Serbia 0.2 - 0.2 0.0
Tunisia 1.4 - 1.4 1.4
Ukraine MFA 12.2 - 12.2 11.0
Ukraine MFA+ 18.0 - 18.0 18.0
Ukraine MFA ULCM 18.1 18.1 - -
Egypt 1.0 - 1.0 1.0
53.6 18.2 34.9 33.7
BOP
Latvia 2.9 - 2.9 0.2
2.9 - 2.9 0.2
EURATOM
Energoatom, K2R4 Ukraine 0.4 - 0.4 0.3
0.4 - 0.4 0.3
Ukraine Facility 33.0 19.9 13.1 13.1
NGEU loans 290.9 182.2 108.7 108.7
Total 526.0 220.3 305.2 296.4
Annual accounts of the European Union 2024
16
SURE
SURE was established in 2020 to provide financial assistance to Member States who were experiencing,
or were seriously threatened with, a severe economic disturbance caused by the COVID-19 pandemic.
The instrument complements the national measures taken by affected Member States.
The availability of the instrument ended at 31 December 2022 and there are no pending disbursements.
The maturity of loans varies between 5 and 30 years.
EFSM
EFSM was created to provide financial assistance to all Member States experiencing or seriously
threatened by a severe economic financial disturbance caused by exceptional occurrences beyond their
control. This programme has expired and no additional loans can be drawn, except for specific tasks such
as the lengthening of maturities of existing loans. Portugal requested the maturity extention of EUR 1.8
billion due in 2024. The new loan was financed by a long-term bond maturing in 2028.
MFA
The MFA programme is a form of financial assistance extended by the EU to partner countries outside the
EU experiencing a balance of payments crisis. It takes the form of medium/long-term loans or grants, or
a combination of these, and is only available to countries benefiting from an International Monetary Fund
(IMF) programme.
Ukraine
In 2022 the European Parliament and the Council agreed three packages of financial assistance for
Ukraine6
, totalling EUR 7.2 billion, to strengthen the immediate resilience of the country subsequent to
Russia’s unprovoked and unjustified war of aggression. All the loans had been disbursed to Ukraine by
the end of 2022. The maturity of these loans to Ukraine varies between 10 to 30 years.
To continue the EU support for Ukraine, a new package of financial assistance of EUR 18 billion was
adopted by the European Parliament and the Council on 14 December 2022 (Regulation (EU) 2022/2463
of the European Parliament and Council7
). The Commission and Ukraine signed a Memorandum of
Understanding and a Loan Facility Agreement in early 2023 and the EUR 18 billion was disbursed in 2023.
The MFA+ loans are funded through the unified funding approach, whereas all previous MFA loans were
funded under the back-to-back funding approach.
In October 2024, the EU adopted a new MFA for Ukraine and the Ukraine Loan Cooperation Mechanism
(ULCM)8
. Under the ULCM, extraordinary revenues from immobilised Russian sovereign assets will be
used to grant non-repayable support to Ukraine to assist the country in repaying new bilateral loans
provided by the G7 partners and the EU under this initiative. Consequently, the EU signed a new MFA
loan agreement with Ukraine in December 2024 for an amount of EUR 18.1 billion to be disbursed in
2025. Until May 2025, the Commission had disbursed EUR 6 billion.
During 2024 Ukraine has timely repaid EUR 600 million of previous MFA loans granted by EU. At the end
of 2024, the total MFA loans outstanding to Ukraine amounted to EUR 29.0 billion (nominal amount).
Ukraine Facility
On 29 February 2024, the European Parliament and the Council adopted Regulation (EU) 2024/792
establishing the Ukraine Facility9
. This new instrument covers the years 2024 to 2027 and offers up to
EUR 50 billion in financial support to Ukraine, including up to EUR 33 billion of sovereign loans. By
6
Decision (EU) 2022/313 of the European Parliament and the Council for EUR 1.2 billion providing emergency
assistance to Ukraine, Decision (EU) 2022/1201 of the European Parliament and the Council for EUR 1.0 billion
providing exceptional assistance to Ukraine, Decision (EU) 2022/1628 of the European Parliament and the Council
for EUR 5.0 billion providing exceptional assistance to Ukraine.
7
Regulation (EU) 2022/2463 of the European Parliament and of the Council of 14 December 2022 establishing an
instrument for providing support to Ukraine for 2023 (macro-financial assistance +) (OJ L 322, 16.12.2022, p. 1).
8
Regulation (EU) 2024/2773 of the European Parliament and of the Council of 24 October 2024 establishing the
Ukraine Loan Cooperation Mechanism and providing exceptional macro-financial assistance to Ukraine (OJ L,
28.10.20240).
9
Regulation (EU) 2024/792 of the European Parliament and of the Council of 29 February 2024 establishing the
Ukraine Facility, OJ L, 2024/792, 29.2.2024.
Annual accounts of the European Union 2024
17
31 December 2024, EUR 13.1 billion of loans have been disbursed to Ukraine. The Ukraine Facility
sovereign loans are funded through borrowings following the unified funding approach.
BOP
The BOP is an assistance programme designed for Member States outside the euro area that are
experiencing or are threatened by difficulties regarding their balance of payments. BOP assistance takes
the form of medium-term loans that are conditional on the implementation of policies designed to
address underlying economic problems. Typically, BOP assistance from the EU is offered in cooperation
with the IMF and other international institutions or countries. No new operations or loan repayments
occurred in 2024. The programme is expected to end in 2025 when the outstanding loan and the related
borrowing are maturing.
Euratom
The European Atomic Energy Community lends money to both Member States and non-Member States,
and to entities of both, to finance projects relating to energy installations.
Liquidity buffer
Under the unified funding strategy, a certain amount of proceeds from borrowings are kept in a bank
account with the European Central Bank. This liquidity buffer ensures that sufficient funds are available to
meet all upcoming disbursments needs while avoiding excess balances. In managing this liquidity buffer
the Commission takes into account expected disbursment needs and the opportunity costs of cash
balances. At year-end 2024 the funds held in the bank account amounted to EUR 33.9 billion.
4.1.3. System of protection
Borrowings of the EU constitute direct and unconditional obligations of the EU and are guaranteed by the
EU Member States. The borrowings undertaken to finance loans are intended to be repaid through timely
collection of the principal and interest due on those loans. Nevertheless, should a beneficiary country
default on or delay their repayments, there are number of safeguards to ensure service of the EU debt,
which are summarised in the table below. In the short term, the borrowings will be repaid from the
available treasury balance of the Commission. Next, borrowings related to the loans to third countries
(except for MFA+ and Ukraine Facility loans) will be repaid from the assets held in the CPF, while in case
of the MFA+, Ukraine Facility loans and loans to Member States, the Commission may call additional
resources from the Member States up to the available own resources margin (‘budgetary headroom’). For
some programmes, there are also guarantees provided by the Member States. As a consequence,
investors are only exposed to the credit risk of the EU, not to that of the beneficiary of the loans.
EU programme funded
by borrowing
System of protection
NGEU (RRF and REPowerEU) Budgetary headroom under the temporary own resources ceiling
of the EU budget – an extra 0.6% of EU GNI above the own
resources ceiling of the EU budget of 1.4% of EU GNI
SURE Guarantee provided by all EU Member States (25%) + budgetary
headroom under the own resources ceiling of the EU budget of
1.4% of EU GNI
EFSM Budgetary headroom under the own resources ceiling of the EU
budget of 1.4% of EU GNI
BOP Budgetary headroom under the own resources ceiling of the EU
budget of 1.4% of EU GNI
MFA (standard) Common Provisioning Fund (9% of the loan to the third country)
Exceptional MFA to Ukraine Common Provisioning Fund (9%) + guarantees by all EU Member
States (61%)
MFA+ to Ukraine Budgetary headroom under the own resources ceiling of the EU
budget of 1.4% of EU GNI
Ukraine Facility Budgetary headroom under the own resources ceiling of the EU
budget of 1.4% of EU GNI
Euratom loans to third countries
(state-owned entities)
Common Provisioning Fund (9% of the loan) and counter-
guarantees by third countries
Euratom loans to Member States Budgetary headroom under the own resources ceiling of the EU
budget of 1.4% of EU GNI
Annual accounts of the European Union 2024
18
4.2. Budgetary guarantees
Under this type of budget implementation, the EU provides guarantees to financial institutions
(implementing partners) for their financing (lending) and investment (equity) operations to pursue its
policy objectives.
The EU has issued guarantees under the following programmes:
— External lending mandate (ELM) guarantees granted to the European Investment Bank (EIB) for
their lending operations outside EU, mainly to sovereign and sub sovereign beneficiaries;
— European Fund for Strategic Investment (EFSI) guarantee granted to the EIB Group for their
operations supporting additional investment in the EU and access to finance for SMEs;
— InvestEU guarantee provided to the EIB Group, the European Bank for Reconstruction and
Development and several financial partners in the EU Member States, in order to mobilise private
investments for the green and digital transition, innovation and social investments and skills. The
InvestEU guarantee may be increased by EFTA and Member States contributions and counter
guarantees;
— External Action Guarantee under NDICI Regulation providing guarantees both to the EIB, for their
financing and investments outside Europe, both to the public and private sector beneficiaries, as
well as to several other counterparts, with the objective of promoting sustainable investments in
the EU’s partner countries;
— European Fund for Sustainability Development (EFSD) guarantee issued to several counterparties
with the aim to support investments in Africa and in the European Neighbourhood countries;
— Ukraine Guarantee issued under the Ukraine Facility regulation to several counterparties to boost
investments for the recovery and reconstruction of Ukraine.
As at 31 December 2024, the nominal outstanding amount of those guarantees at the maximum level
granted to those financial institutions amounted to EUR 109.9 billion, of which EUR 72.6 billion relates to
financing or investment operations signed by the implementing partners (InvestEU, NDICI and Ukraine
guarantees are still in the investment period, during which the partners can include new operations under
the guarantee).
The Member States and EEA countries may also contribute to the InvestEU programme.
Until 31 December 2024, the EU signed contribution agreements with those countries for EUR 2.8 billion,
out of which EUR 2.2 billion relates to cash contributions and EUR 0.6 billion to counter-guarantees.
Annual accounts of the European Union 2024
19
4.3. Common Provisioning Fund
In order to satisfy any guarantee calls to cover losses incurred by the implementing partners in a timely
manner, the EU provisions amounts from the budget. As of 2021, all assets provisioned are held in the
CPF, which functions as a single portfolio, with assets mainly invested in the debt securities. Currently, it
combines provisioning for all the EU budgetary guarantees and some financial assistance programmes.
The resources of the CPF are allocated into compartments for the purpose of tracing the amounts relating
to the contributing budgetary guarantees and financial assistance programmes.
At 31 December 2024, the Commission holds EUR 23.2 billion net assets in the CPF for the following
compartments:
— Guarantee Fund for external actions – EUR 3.2 billion (covering ELM guarantees as well as pre-
2021 MFA and Euratom loans to third countries)
— EFSI – EUR 8.9 billion
— EFSD – EUR 0.8 billion
— InvestEU compartments – EUR 6.8 billion (including Member State and EEA countries cash
contributions)
— NDICI EFSD+ – EUR 2.9 billion
— Ukraine Guarantee – EUR 0.2 billion
— MFA loans post-2020 – EUR 0.1 billion
— MFA Ukraine loans – EUR 0.3 billion
Annual accounts of the European Union 2024
20
5. FINANCIAL STATEMENTS ANALYSIS
5.1. Revenue
The consolidated revenue of the EU incorporates amounts related to exchange transactions and non-
exchange transactions, the latter being the most significant. The five-year trend of the main non-
exchange revenue categories (comprising GNI resources, Traditional own resources, VAT resources,
Plastics own resources, Fines and Recovery of expenses) is as follows:
Five-year trend of revenue from main non-exchange transactions*
*
2020 to 2024 figures: excluding revenue relating to the UK’s withdrawal from the EU
As budget revenue should equal (or exceed) budget expenditure, the main driver in the revenue trend
shown above is the payments made each year.
Main developments in 2024
In 2024, total revenue, comprising all revenue categories, amounted to EUR 175.7 billion, compared to
EUR 171.9 billion in the previous year. The main developments explaining the increase of EUR 3.8 billion
or 2.2% were:
— Fines related revenue increased by EUR 2.3 billion mainly due to fines issued to companies for
breaches of EU competition rules;
— Financial revenue increased by EUR 2.0 billion mainly due to increased interest earned;
— VAT contributions have increased from EUR 22.5 billion in 2023 to EUR 24.5 billion in 2024;
— Plastics own resources increased from EUR 7.2 billion in 2023 to EUR 8.2 billion in 2024;
— Traditional own resources increased from EUR 19.8 billion in 2023 to EUR 20.6 billion in 2024;
and
— Revenue from GNI (gross national income), the primary element of the EU’s operating revenue,
decreased from EUR 101.3 billion in 2023 to EUR 95.0 billion in 2024. The decrease of EUR 6.3
billion or 6.2%, partially offsetting the other movements in revenue described above, is explained
to a great extent by a reduction of the payment appropriations needs.
Annual accounts of the European Union 2024
21
5.2. Expenses
The main component of expenses recognised in the consolidated financial statements are expenses under
the shared management mode, which includes the following funds: (i) European Agricultural Guarantee
Fund (EAGF), (ii) European Agricultural Fund for Rural Development (EAFRD) and other rural
development instruments, (iii) European Regional Development Fund (ERDF) & Cohesion Fund (CF), and
(iv) European Social Fund (ESF). These funds made up EUR 101.9 billion or 37.3% of the total expenses
of EUR 272.9 billion incurred in 2024 (2023: EUR 125.4 billion, 51.5% of the total expenses). The split of
expenses under the shared management mode and their relative weights are presented below:
Main expenses under the shared management mode for the financial year 2024
The decrease of expenses under the shared management mode is mainly due to decreased expenses
relating to the ERDF and Cohesion Fund (by EUR 23.6 billion) as the implementation of the programmes
of the former MFF is now in its final stage.
Expenses under the direct management mode, which represents budget implementation by the
Commission, executive agencies and trust funds, increased from EUR 61.9 billion in 2023 to
EUR 99.0 billion in 2024. The increase of EUR 37.1 billion is mainly due to the non-repayable support
granted under the NGEU’s RRF, which amounted to EUR 65.8 billion (2023: EUR 36.0 billion) as Member
States use the funds provided and milestones are achieved.
Expenses under the indirect management mode represent the budget implementation by EU agencies, EU
bodies, third countries, international organisations and other entities. In 2024, the expenses under the
indirect management mode amounted to EUR 16.6 billion (2023: EUR 15.2 billion). The increase is mainly
due to the increased expenses in external actions.
5.3. Assets
As at 31 December 2024 total assets amounted to EUR 518.5 billion (2023: EUR 467.7 billion) – the
increase is mainly due to further lending under the NGEU instrument and new loans issued to Ukraine
under the Ukraine Facility. The most significant assets on the EU balance sheet were financial assets
other than cash and cash equivalents (EUR 328.3 billion), pre-financing (EUR 78.9 billion), receivables
and recoverables (EUR 31.7 billon) and cash and cash equivalents (EUR 63.2 billion). Other assets,
amounting to EUR 16.3 billion, mainly included property, plant and equipment and intangible assets.
Annual accounts of the European Union 2024
22
Composition of assets at 31 December 2024
The increase in total assets of EUR 50.7 billion or 10.8% from the previous year was mainly due to the
following effects:
— Loans outstanding increased from EUR 246.9 billion in 2023 to EUR 283.6 billion in 2024. The
increase of EUR 36.7 billion or 14.9% mainly reflects the issuance of further loans to Member
States under the RRF and REPowerEU (EUR 29.4 billion) and new loans under the Ukraine Facility
and MFA programmes (EUR 13.1 billion and EUR 1.1 billion respectivelly), offset by EFSM and
MFA repayments of EUR 1.4 billion and impairments on the new Ukraine loans (EUR 5.7 billion);
— Total pre-financing decreased from EUR 91.7 billion in 2023 to EUR 78.9 billion in 2024. This is
linked mainly to the significant decrease of EUR 18 billion in ERDF, CF & ESF pre-financing of the
previous programming period as the period is reaching its closure stage and higher amounts are
cleared. There was additionally a considerable decrease of EUR 3.8 billion in the non-repayable
financial support granted under the RRF due to clearings that took place during the year following
Member States reaching milestones and targets;
— Cash and cash equivalents increased from EUR 39.6 billion in 2023 to EUR 63.2 billion in 2024.
The increase of EUR 23.6 billion or 59.6% is mainly due to the higher liquidity buffer relating to
the unified funding (EUR 12.5 billion held in the European Central Bank account in 2023 versus
EUR 33.9 billion at the end of 2024), which resulted from high level of disbursements planned for
the beginning of 2025; and
— Receivables and recoverables decreased from EUR 35.2 billion to EUR 31.7 billion. The decrease
of EUR 3.5 billion or 9.9% is mainly due to the decrease in the net amount owed by the UK under
the Withdrawal Agreement – see below.
UK withdrawal from the EU
On 31 January 2020, the United Kingdom withdrew from the European Union. The terms of its departure
are set out in an Agreement on the withdrawal of the UK from the EU and the European Atomic Energy
Community, also known as the ‘Withdrawal Agreement’ or ‘WA’. As part of this deal, the UK agreed to
honour all financial obligations undertaken while it was a member of the EU. The Agreement entered into
force on 31 January 2020. Under the Withdrawal Agreement, the UK will continue to contribute to the EU
budget and to benefit from pre-2021 EU programmes and expenditure as if it was a Member State. The
UK will also receive back certain specified sums it paid into the EU budget or monies received by the EU
budget linked to its period of membership. The EU reports twice a year to the UK on the amounts due
and the UK pays these on a monthly basis. The reporting is updated each year based on actual figures.
Annual accounts of the European Union 2024
23
The obligations under the Withdrawal Agreement create liabilities and receivables for the EU which have
to be calculated and reflected in the EU’s annual accounts. They cover in particular the following areas:
— own resources (Article 136)
— outstanding commitments (Article 140)
— competition fines (Article 141)
— Union Liabilities (Article 142)
— contingent financial liabilities and financial instruments (Articles 143 & 144)
— net assets of the European Coal & Steel Community (Article 145)
— EU investment in the European Investment Fund, EIF (Article 146)
— contingent liabilities concerning legal cases (Article 147).
Article 140 Article 142 Other 31.12.2024 31.12.2023
Due from the UK 4 432 10 136 116 14 683 18 867
Due to the UK - – (1 922) (1 922) (3 394)
Total 4 432 10 136 (1 806) 12 762 15 473
Non-current 2 469 9 802 (1 040) 11 231 13 088
Current 1 963 334 (766) 1 530 2 385
Pre-financing
In 2024, pre-financing, excluding other advances to Member States and contributions to the trust funds
Bêkou and Africa, amounted to EUR 75.1 billion (2023: EUR 89.4 billion), almost all of which related to
Commission activities. The decrease of EUR 14.3 billion or 16.0% is mainly related to the decrease of
pre-financing related to shared management from EUR 36.6 billion in 2023 to EUR 25.0 billion in 2024, as
programmes of the previous MFF advance further in their closure stage:
Commission pre-financing by management mode
Annual accounts of the European Union 2024
24
The level of pre-financing granted under MFF programmes is significantly influenced by the respective
MFF cycle – for example at the beginning of an MFF period large advances are expected to be paid to
Member States under cohesion policy and these amounts remain available to Member States until the
closure of the programmes. An annual pre-financing is also paid out, which must be used within the year
or be recovered the following year as part of the annual closure of the accounts cycle. The Commission
makes every effort to ensure that pre-financing is maintained at an appropriate level. A balance has to be
struck between ensuring sufficient funding for projects and the timely recognition of expenditure.
5.4. Liabilities
As at 31 December 2024 the total liabilities were EUR 827.3 billion (2023: EUR 679.8 billion) – the
increase is driven mainly by the borrowings taken out in 2024 under the unified funding approach. The
most significant liabilities were borrowings for NGEU and financial assistance (EUR 594.0 billion), pension
obligations and other post-employment benefits liabilities (EUR 93.1 billion), accrued charges and
deferred income (EUR 67.1 billion) and payables to third parties (EUR 55.4 billion).
Composition of liabilities at 31 December 2024
The increase of EUR 147.5 billion or 21.7% over the previous year was mainly due to the following
effects:
— Borrowings increased from EUR 450.6 billion in 2023 to EUR 594.0 billion in 2024. The increase of
EUR 143.4 billion or 31.8% mainly relates to the new issuances under the unified funding
approach (for NGEU and the Ukraine Facility), net of repayments and changes in carrying
amount, of EUR 144.9 billion, less EFSM and MFA repayments of EUR 1.4 billion;
— Accrued charges and deferred income decreased from EUR 76.8 billion in 2023 to EUR 67.1 billion
in 2024. The decrease of EUR 9.7 billion or 12.6% mainly relates to the ERDF & CF; and
— Payables increased from EUR 50.5 billion in 2023 to EUR 55.4 billion in 2024. The increase of
EUR 4.9 billion or 9.7% is primarily related to RRF (increase of EUR 4.9 billion);
Annual accounts of the European Union 2024
25
Total cost claims and invoices received and recognised in the Balance Sheet under the heading ‘Payables’
5.5. Net assets
The excess of liabilities over assets at 31 December 2024 stood at EUR 308.8 billion (2023:
EUR 212.2 billion). It should be noted that this excess of liabilities over assets does not mean that the EU
institutions and bodies are in financial difficulties, rather it means that certain liabilities will be funded by
future annual budgets. Many expenses are recognised under accrual accounting rules in the current year
although they may be actually paid in following years and funded using future budgets; the revenues
related to these future fundings will only be accounted for in future periods. Apart from the borrowings
under the unified funding approach, which are to be repaid up to 2054, and the employee benefits
liability, which is to be paid over several decades, the most significant amounts are for activities relating
to the EAGF, the bulk of which is usually paid in the first quarter of the following year.
Annual accounts of the European Union 2024
26
6. SUMMARY OF BUDGET IMPLEMENTATION
6.1. Revenue
In the initial adopted EU budget, signed by the President of the European Parliament on
22 November 2023, total payment appropriations amounted to EUR 142 630 million and the amount to
be financed by own resources totalled EUR 136 499 million. The revenue and expenditure estimates in
the initial budget are typically adjusted during the budgetary year by way of amending budgets.
Adjustments in the GNI-based own resources ensure that budgeted revenue matches exactly budgeted
expenditure. In accordance with the principle of equilibrium, budget revenue and expenditure (payment
appropriations) must be in balance.
During 2024, five amending budgets were adopted. Taking them into account, the final adopted revenue
for 2024 amounted to EUR 149 744 million and the total financed by own resources amounted to
EUR 141 170 million. The main factor for that increase of Member States' contributions in 2024 was the
increase of payment appropriations.
Title 1 : Own resources
The collection of traditional own resources was very close to the forecasted amounts in the budget.
Member States' final VAT, GNI and Plastics payments corresponded closely to the final budgetary
estimate. The differences between the forecasted amounts and the amounts actually paid are due to the
differences between the euro rates used for drawing up the budget and the rates in force at the time
when the Member States outside the euro area actually made their payments.
Title 2 : Surpluses, balances and adjustments
The surplus of the previous financial year amounted to EUR 633 million. This amount was inscribed in the
budget 2024 through an amending budget and the own resources contributions from the Member States
was reduced accordingly.
For the VAT and GNI balances, the rules are set out in Article 10b of the Making Available Regulation
(Council Regulation (EU, Euratom) No 609/2014). In the case of the Plastics balances the rules are
stipulated in Article 9 of the Plastics Making Available Regulation (Council Regulation (EU, Euratom) No
2021/770).
According to these rules the total sum of the balances are calculated in order for the impact on the EU
budget to be zero (‘netting system’) and the procedure does not entail a budgetary amendment. The
Commission therefore directly requests the Member States to pay the net amounts in accordance with
the rules of the Making Available Regulation.
Title 3 : Administrative revenue
This title comprises mainly revenue from taxes and levies on the remuneration of staff.
Title 4 : Financial revenue, default interest and fines
The main part corresponds to the fines in connection with the implementation of the rules on competition.
Title 5 : Budgetary guarantees, borrowing and lending operations
This title has increased significantly with the advent of the NGEU. NGEU funds within this title are
assigned revenue. Title 5 covers revenue related to guarantees and interest and repayments of loans
granted. It also channels funds (for the NGEU non-repayable support under the Recovery and Resilience
Facility and for reinforcement of MFF programmes) from assigned revenue that Member States receive
under the European Union Recovery Instrument (EURI).
Title 6 : Revenue, contributions and refunds related to Union policies
This title concerns mainly revenue from financial corrections related to structural and agricultural funds
(ESIF, EAGF and EAFRD). It also includes the participation of third countries in research programs, the
Annual accounts of the European Union 2024
27
clearance of accounts in agricultural funds and other contributions and refunds to EU programs/activities.
A substantial part of this total is made up of assigned revenue, which gives rise to the entering of
additional appropriations on the expenditure side.
Total 2024 budget revenue amounted to EUR 250 609 million:
6.2. Expenditure
6.2.1. Budget implementation
In 2024, the fourth year of the MFF 2021-2027, the final adopted budget amounted to EUR 195.3 billion
of commitment appropriations and EUR 149.7 billion of payment appropriations. In addition,
EUR 31.1 billion of commitment appropriations were available as assigned revenue, out of which
EUR 0.7 billion related to the NGEU10
, and EUR 1.3 billion of commitment appropriations were carried over
from 2023. The payment appropriations related to 2024 assigned revenue amounted to EUR 122.9 billion,
out of which EUR 79.0 billion related to the NGEU and EUR 3.2 billion of payment appropriations were
carried over from 2023.
Active monitoring of budget implementation and good cooperation between the European Parliament, the
Council and the Commission brought about full implementation of the budget.
The implementation of the total commitment appropriations in 2024 amounted to EUR 213.7 billion:
— EUR 193.1 billion from the final adopted budget;
— EUR 0.9 billion from appropriations carried-over or made available again from 2023;
— EUR 19.7 billion from appropriations stemming from assigned revenue;
– of which EUR 0.5 billion from NGEU.
10
For a comprehensive overview of the NextGenerationEU (NGEU), please see also sections 2.2 and 2.3 above.
Annual accounts of the European Union 2024
28
The implementation of the total payment appropriations in 2024 amounted to EUR 247.0 billion:
— EUR 146.1 billion from the final adopted budget;
— EUR 2.7 billion from appropriations carried-over or made available again from 2023;
— EUR 98.2 billion from appropriations stemming from assigned revenue;
– of which EUR 73.1 billion from NGEU.
In cases allowed by the Financial Regulation and/or legal bases, the appropriations of the voted budget
that were not implemented in 2024 were carried over to 2025: EUR 1.4 billion of commitment
appropriations and EUR 3.8 billion of payment appropriations.
Likewise, EUR 11.1 billion of commitment appropriations of assigned revenue and EUR 24.7 billion of
payment appropriations of assigned revenue were carried over to 2025 in accordance with the Financial
Regulation.
Total 2024 commitment appropriations implementation per MFF 2021-2027 heading were as shown
below:
The 2024 implementation for all types of appropriations (budget, carry-overs from previous year and
assigned revenue) was 94% for commitments and 90% for payments. Implementation rates including the
appropriations carried over to 2025 (in accordance with the Financial Regulation and/or legal bases)
reached 99.6% for commitment appropriations and 100% for payment appropriations of the voted
budget for 2023.
The NGEU appropriations were inscribed in full in 2021, i.e. EUR 421.1 billion in commitment
appropriations. 2023 was the last year for which the related legal commitments could be entered into.
In 2024, the NGEU payment appropriations amounted to EUR 76.6 billion and the implementation
reached 95.4%. The remaining amount of EUR 3.5 billion of payment appropriations was carried over to
2025.
Annual accounts of the European Union 2024
29
6.2.2. Commitment appropriations definitively cancelled
Under the Conditionality Regulation decommitments for a total of EUR 1 044 million (of which EUR 30
million under NGEU) were posted in the course of 2022 on commitments related to Hungary. By the end
of 2024 the related commitment appropriations could not be reconstituted and were definitively
cancelled.
6.2.3. Outstanding commitments
Outstanding commitments (commonly referred to as RAL – reste à liquider), which correspond to
amounts committed but not yet paid for, stood at EUR 507.4 billion at the end of 2024. The outstanding
commitments decreased as compared to 2023 (by EUR 35.6 billion).
The main driver of the 2024 decrease of the RAL was the NGEU (non-repayable part) implementation,
contributing EUR 166.3 billion (33%) to the total RAL at the end of 2024. Because the NGEU
appropriations are to be committed until 31 December 2023 and paid by 31 December 2026, in
accordance with the Articles 3 (4) and 3 (9) of the EURI Regulation, the trend of nominally growing RAL
linked to NGEU has reversed in 2024.
6.2.4. Budget result
The budget result (surplus) increased from EUR 0.6 billion in 2023 to EUR 1.3 billion in 2024. The 2024
budget result is mainly impacted by the overimplementation of budgetary revenue on title 4 – Financial
revenue, default interest and fines.
Annual accounts of the European Union 2024
30
7. EU POLITICAL AND FINANCIAL FRAMEWORK,
GOVERNANCE AND ACCOUNTABILITY
The European Union (EU) is a Union on which the Member States confer competences to attain objectives
they have in common. The Union is founded on the values of respect for human dignity, freedom,
democracy, equality, the rule of law and respect for human rights, including the rights of persons
belonging to minorities. These values are common to the Member States in a society in which pluralism,
non-discrimination, tolerance, justice, solidarity and equality between women and men prevail.
7.1. Political and financial framework
EU Treaties
The overarching objectives and principles that guide the Union and the
European institutions are defined in the Treaties. The Union and the EU
institutions may only act within the limits of the competences conferred by
the Treaties so as to attain the objectives set out therein and must do this in
accordance with the principles11
of subsidiarity and proportionality. In order
to attain its objectives and carry out its policies, the Union provides itself with the necessary financial
means. The Commission is responsible for promoting the general interest of the Union which includes
executing the budget and managing programmes in cooperation with the Member States and in
accordance with the principle of sound financial management.
The EU pursues the objectives established by the Treaty with various instruments, one of which is the EU
budget. Others are, for example, a common legislative framework or joint policy strategies.
Multiannual financial
framework and
spending programmes
The policies supported by the EU budget are implemented in accordance with
the multiannual financial framework (MFF) and corresponding sectoral
legislation defining spending programmes and instruments. These translate
the EU’s political priorities into financial terms over a period long enough to
be effective and to provide a coherent long-term perspective for beneficiaries
of EU funds and co-financing national authorities. Maximum annual amounts (ceilings) are set for EU
expenditure as a whole and for the main categories of expenditure (headings). The sum of the ceilings of
all headings gives the total ceiling for commitment appropriations. The MFF is adopted by the Council by
unanimity of all Member States, with the consent of the European Parliament. The current 2021-2027
multiannual financial framework was adopted on 17 December 202012
. The 2021-2027 multiannual
financial framework is complemented by the temporary recovery instrument NextGenerationEU (see
section 2).
Annual budget
The annual budget is prepared by the Commission. The European Parliament
and the Council agree (usually by mid December) on the budget for the
following year, based on the procedure of Article 314 TFEU. According to the
principle of budgetary equilibrium, total revenue must equal total
expenditure (payment appropriations) for a given financial year.
The main sources of funding of the EU budget are own resources revenues which are complemented by
other revenues. There are four types of own resources: Traditional own resources (mainly custom
duties), the own resource based on value added tax (VAT), the own resource based on non-recycled
plastic packaging waste (introduced in 2021) and the own resource based on gross national income
(GNI). Other revenues arising from the activities of the EU (e.g. competition fines) normally represent
less than 10% of total revenue.
11
Under the principle of subsidiarity, the Union shall act only if and in so far as the objectives of the proposed action
cannot be sufficiently achieved by the Member States but can rather, by reason of the scale or effects, be better
achieved at Union level. Under the principle of proportionality, the content and form of Union action shall not exceed
what is necessary to achieve the objectives of the Treaties (see Article 5 TEU).
12
On 1st of February 2024, the European Council agreed on a mid-term revision of 2021-2027 MFF ceilings, following
the Commission’s proposals COM(2023) 336.
Annual accounts of the European Union 2024
31
Management modes
The EU budget is implemented in three management modes which determine
how the money is paid out and managed:
— Shared management: the vast proportion of the budget (around 3/4 of the budget) is managed
under a system of shared management by the Commission in cooperation with the Member
States, notably in the areas of structural funds and agriculture.
— Direct management: the Commission also manages programmes itself and can delegate the
implementation of specific programmes to executive agencies.
— Indirect management: Expenditure decisions can also be indirectly managed via other bodies
within or outside the EU. The Financial Regulation and/or contribution agreements define the
necessary control and reporting mechanisms by these entities and the supervision by the
Commission where budget implementation tasks are entrusted to national agencies, the European
Investment Bank Group, third countries, international organisations (e.g. the World Bank or the
United Nations) and other entities (e.g. EU decentralised agencies, Joint Undertakings).
Financial instruments
and budgetary
guarantees
The traditional method of budget implementation of giving grants and
subsidies is complemented by issuing financial instruments in the form of
guarantees as well as equity and loans. Furthermore, the EU engages in
borrowing and lending activities for specific financial assistance programmes
in order to support Member States and third countries in the form of bilateral
loans financed from debt issued on the capital markets with the guarantee of the EU Budget. In
December 2022, Parliament and the Council established the unified funding approach to EU borrowing,
under which the Union will be issuing single branded ‘EU-Bonds’, rather than separately denominated
bonds for individual programmes.
Financial Regulation
The Financial Regulation (FR)13
applicable to the general budget is a central
act in the regulatory architecture of the EU´s finances. It defines in detail the
financial rules applicable to the execution of the EU budget and the roles of
the different actors involved in ensuring that the money is used soundly and
achieves the objectives set. It also includes the specific provisions applicable
to financial instruments, budgetary guarantees and financial assistance.
7.2. Governance and accountability
7.2.1. Institutional structure
The EU has an institutional framework through which it aims to promote its values, advance its
objectives, serve its interests, those of its citizens and those of the Member States, and ensure the
consistency, effectiveness and continuity of its policies and actions. The organisational structure consists
of institutions, agencies and other EU autonomous bodies. The Financial Regulation, together with the
applicable accounting rules, defines which of these entities are included in the EU consolidated accounts
(please see note 9 of the EU consolidated annual accounts for the list of entities included in the scope of
consolidation).
The European Parliament, jointly with the Council, exercises legislative and budgetary functions. The
Commission is politically accountable to the European Parliament. The Council also carries out policy-
making and coordinating functions within the general political direction and priorities of the Union set by
the European Council.
The European Commission is the executive arm of the European Union. It promotes the Union’s general
interest and takes appropriate initiatives to that end. It ensures the application of the Treaties and
oversees the application of Union law by Member States under the control of the Court of Justice of the
European Union. It exercises coordinating, executive and management functions, executes the budget
and manages programmes.
13
Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the
financial rules applicable to the general budget of the Union (recast), OJ L, 2024/2509, 26.9.2024.
Annual accounts of the European Union 2024
32
The Commission implements the budget, in large part in cooperation with the Member States.14
Together,
they ensure that the appropriations are used in accordance with the principles of sound financial
management. Regulations lay down the control and audit obligations of the Member States when they
share the implementation of the budget and the resulting responsibilities. They also lay down the
responsibilities and detailed rules for each of the EU’s institutions as concerns their own expenditure.
7.2.2. The Commission’s governance structure
The Commission’s governance arrangements and how these ensure that the Commission functions as a
modern, accountable and performance-oriented institution are described in the Communication15
on
Governance in the European Commission.
The Commission performs its functions under the leadership of the College of Commissioners, which sets
priorities and takes overall political responsibility for the work of the Commission. As a College, the
Commission works under the political guidance of its President, who presents, as part of his or her
nomination to the European Parliament the objectives he or she intends to pursue in the form of political
guidelines. The President decides on the internal organisation of the Commission, ensuring that it acts
consistently, efficiently and as a collegiate body.
The College delegates the operational implementation of the budget and financial management to the
Directors-General and Heads of Service who lead the administrative structure of the Commission. This
decentralised approach creates an administrative culture that encourages civil servants to take
responsibility for activities over which they have control and requires them to provide assurance as
concerns the activities for which they are accountable.
Under the authority of the President and in close cooperation with the Member of the Commission in
charge of budget, human resources and administration, and with the involvement of the Presidential and
central services, the Corporate Management Board provides coordination, oversight, advice and strategic
orientations.
The internal arrangements define a coherent set of robust controls and management tools which allow
the College of Commissioners to assume political responsibility for the work of the Commission.16
7.2.3. The Commission’s financial management
In the Commission, the roles and responsibilities in financial management are clearly defined (e.g. in the
Financial Regulation and the Internal Rules17
) and applied accordingly. As authorising officers by
delegation, the Commission’s Directors-General and Heads of Service are responsible for the sound
financial management of EU resources, compliance with the provisions of the Financial Regulation, risk
management and establishing an appropriate internal control framework.
The responsibility of the Authorising Officers covers the entire management process, from determining
what needs to be done to achieve the policy objectives set by the institution to managing the activities
from both an operational and a sound financial management standpoint. Tasks can further be sub-
delegated to Directors, Heads of Unit and others, who thereby become Authorising Officers by Sub-
Delegation. Each authorising officer by delegation may rely on one or two directors in charge of risk
management and internal control to oversee and monitor the implementation of internal control systems.
The Commission’s central services provide guidance and advice and promote best practices, including
through the work of the Corporate Management Board.
The Financial Regulation requires each authorising officer to prepare an annual activity report (AAR)
detailing achievements, internal control and financial management activities during the year. The AAR
includes a declaration that resources have been used based on the principles of sound financial
management and that control procedures are in place which provide the necessary guarantees
14
See Article 317 TFEU.
15
C(2020) 4240 of 24.6.2020.
16
As a result, the term 'European Commission' is used to denote both the institution – the College – formed by the
Members of the Commission, and its administration managed by the Directors-General of its departments (and
heads of other administrative structures such as services, offices and executive agencies).
17
Since mid-2019 (further to the revised Article 12 of the Internal Rules) the management of the European
Development Fund (EDF) is co-delegated among five departments (INTPA (DEVCO), ECHO, EAC, EACEA and JRC).
Annual accounts of the European Union 2024
33
concerning the legality and regularity of the underlying transactions. The Annual Management and
Performance Report for the EU budget18
is the main instrument through which the College of
Commissioners assumes political responsibility for the financial management of the EU
budget.
The Accounting Officer of the Commission is centrally responsible for treasury management, recovery
procedures, laying down accounting rules based on International Public Sector Accounting Standards
(IPSAS), validating accounting systems and the preparation of the Commission's and consolidated annual
accounts of the EU. Furthermore, the Accounting Officer is required to sign the annual accounts declaring
that they present fairly, in all material aspects, the financial position, the results of the operations and
the cash flows of the Union. The annual accounts are adopted by the College of Commissioners. The
Accounting Officer is an independent function and bears a major responsibility as regards financial
reporting in the Commission.
The Internal Auditor of the Commission is likewise a centralised and independent function and provides
independent advice, opinions and recommendations on the quality and functioning of internal control
systems inside the Commission, EU agencies and other EU autonomous bodies.
The Audit Progress Committee ensures the independence of the Internal Auditor and monitors the quality
of internal audit work and the follow-up given by the Commission services to internal and external audit
recommendations, as well as to the European Court of Auditors’ discharge related findings and
recommendations on the reliability of the annual consolidated EU accounts. The advisory role of the
committee contributes to the overall further improvement of the Commission’s effectiveness and
efficiency in achieving its goals and facilitates the College’s oversight of the Commission’s governance,
risk management, and internal control practices.
7.2.4. External audit and discharge procedure
In line with the principles of sound financial management, funds must be managed in an effective,
efficient and economic manner. An accountability framework based on comprehensive reporting, external
audit and political control exists to provide reasonable assurance that EU funds are spent in a proper
manner.
The European Parliament decides, after a recommendation by the Council, on whether or not to
provide its final approval, known as ‘granting discharge’, on the way the Commission implemented the EU
budget in a given year. The annual discharge procedure ensures that the Commission is held politically
accountable for the implementation of the EU budget.
Every year the European Court of Auditors examines the reliability of the accounts, whether all
revenue has been received and all expenditure incurred in a lawful and regular manner and whether the
financial management and the qualitative aspects of budgeting, including the performance dimension,
have been sound. As from 2021, given the considerable importance of NextGenerationEU, the European
Court of Auditor’s opinion on the legality and regularity of expenditure under the traditional EU budget is
complemented by a separate opinion on the legality and regularity of expenditure under the Recovery
and Resilience Facility. The publication of the annual report of the European Court of Auditors is the
starting point for the discharge procedure. The auditors also prepare special reports on specific spending
or policy areas, or on budgetary or management issues.
The decision on the discharge is also based on the Commission’s integrated financial and accountability
reporting, on hearings of Commissioners in the European Parliament and on the replies provided to
written questions addressed to the Commission.
18
https://ec.europa.eu/info/publications/integrated-financial-and-accountability-reporting_en.
Annual accounts of the European Union 2024
34
NOTE ACCOMPANYING THE
CONSOLIDATED ACCOUNTS
The consolidated annual accounts of the European Union for the year 2024 have been prepared on the
basis of the information presented by the institutions and bodies under Article 252 (2) of the Financial
Regulation applicable to the general budget of the European Union. I hereby declare that they were
prepared in accordance with Title XIII of this Financial Regulation and with the accounting principles,
rules and methods set out in the notes to the financial statements.
I have obtained from the accounting officers of these institutions and bodies, who certified its reliability,
all the information necessary for the production of the accounts that show the European Union's assets
and liabilities and budgetary implementation.
I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the
accounts of the European Commission, I have a reasonable assurance that the accounts present fairly, in
all material aspects, the financial position, the results of the operations and the cashflows of the
European Union.
Beatriz SANZ REDRADO
Accounting Officer of the Commission
13 June 2025
Annual accounts of the European Union 2024
35
EUROPEAN UNION
FINANCIAL YEAR 2024
CONSOLIDATED FINANCIAL STATEMENTS
AND EXPLANATORY NOTES19
19
It should be noted that due to the rounding of figures into millions of euros, some financial data in the tables below
may appear not to add-up.
Annual accounts of the European Union 2024
36
CONTENTS
BALANCE SHEET ........................................................................................... 37
STATEMENT OF FINANCIAL PERFORMANCE ....................................................... 38
CASHFLOW STATEMENT................................................................................. 39
STATEMENT OF CHANGES IN NET ASSETS ........................................................ 40
NOTES TO THE FINANCIAL STATEMENTS .......................................................... 41
1. SIGNIFICANT ACCOUNTING POLICIES ..................................................... 42
2. NOTES TO THE BALANCE SHEET............................................................. 59
3. NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE ......................... 95
4. CONTINGENT LIABILITIES AND ASSETS................................................. 104
5. BUDGETARY AND LEGAL COMMITMENTS................................................ 110
6. FINANCIAL RISK MANAGEMENT............................................................ 115
7. RELATED PARTY DISCLOSURES ............................................................ 132
8. EVENTS AFTER THE BALANCE SHEET DATE ............................................ 134
9. SCOPE OF CONSOLIDATION................................................................. 135
Annual accounts of the European Union 2024
37
BALANCE SHEET
EUR million
Note 31.12.2024 31.12.2023
NON-CURRENT ASSETS
Intangible assets 2.1 1 095 976
Property, plant and equipment 2.2 13 713 13 399
Investments accounted for using the equity method 2.3 1 446 1 365
Financial assets 2.4 308 961 274 283
Pre-financing 2.5 40 861 41 417
Exchange receivables and non-exchange recoverables 2.6 13 272 16 083
379 347 347 524
CURRENT ASSETS
Financial assets 2.4 19 377 11 088
Pre-financing 2.5 38 058 50 257
Exchange receivables and non-exchange recoverables 2.6 18 465 19 116
Inventories 2.7 85 78
Cash and cash equivalents 2.8 63 163 39 616
139 148 120 156
TOTAL ASSETS 518 495 467 679
NON-CURRENT LIABILITIES
Pension and other employee benefits 2.9 (93 096) (90 808)
Provisions 2.10 (2 280) (2 102)
Financial liabilities 2.11 (539 575) (430 771)
(634 951) (523 682)
CURRENT LIABILITIES
Provisions 2.10 (7 536) (1 233)
Financial liabilities 2.11 (62 328) (27 613)
Payables 2.12 (55 414) (50 516)
Accrued charges and deferred income 2.13 (67 091) (76 805)
(192 368) (156 166)
TOTAL LIABILITIES (827 319) (679 848)
NET ASSETS (308 824) (212 169)
Reserves 2.14 986 1 052
Amounts to be called from Member States* 2.15 (309 810) (213 221)
NET ASSETS (308 824) (212 169)
* The European Parliament adopted a budget on 27 November 2024 which provides for the payment of the EU's short-term liabilities
from own resources to be collected by, or called up from, the Member States in the following year. Additionally, under Article 83 of
the Staff Regulations (Regulation (EEC, Euratom, ECSC) No 259/68 (OJ L 56, 4.3.1968, p.1) of 29 February 1968 as amended), the
Member States shall jointly guarantee the liability for pensions.
Annual accounts of the European Union 2024
38
STATEMENT OF FINANCIAL PERFORMANCE
EUR million
Note 2024 2023
REVENUE
Revenue from non-exchange transactions
GNI resources 3.1 95 037 101 287
Traditional own resources 3.2 20 587 19 840
VAT resources 3.3 24 547 22 526
Plastics own resources 3.4 8 227 7 225
Fines 3.5 4 039 1 748
Recovery of expenses 3.6 957 803
UK Withdrawal Agreement 3.7 – 681
Other 3.8 10 673 8 800
164 068 162 909
Revenue from exchange transactions
Financial revenue 3.9 9 005 6 983
Other 3.10 2 592 1 963
11 597 8 946
Total Revenue 175 665 171 855
EXPENSES
Implemented by Member States 3.11
European Agricultural Guarantee Fund (40 267) (40 716)
European Agricultural Fund for Rural Development and
other rural development instruments
(14 779) (14 605)
European Regional Development Fund and Cohesion Fund (28 833) (52 429)
European Social Fund (18 037) (17 665)
Other (3 854) (4 251)
Implemented by the Commission, executive agencies and
trust funds
3.12 (98 971) (61 888)
Implemented by other EU agencies and bodies 3.13 (4 388) (4 226)
Implemented by third countries and international
organisations
3.13
(6 639) (6 090)
Implemented by other entities 3.13 (5 599) (4 902)
Staff and pension costs 3.14 (14 966) (14 023)
Finance costs 3.15 (27 226) (14 355)
UK Withdrawal Agreement 3.7 (315) –
Other expenses 3.16 (8 999) (8 142)
Total Expenses (272 873) (243 292)
ECONOMIC RESULT OF THE YEAR (97 208) (71 437)
Annual accounts of the European Union 2024
39
CASHFLOW STATEMENT
EUR million
2024 2023
Economic result of the year (97 208) (71 437)
Operating activities
Amortisation 191 181
Depreciation 1 194 1 203
(Reversal of) impairment losses on investments – –
(Increase)/decrease in loans (36 703) (42 522)
(Increase)/decrease in pre-financing 12 756 8 821
(Increase)/decrease in exchange receivables and non-exchange
recoverables
3 463 13 000
(Increase)/decrease in inventories (7) 3
Increase/(decrease) in pension and other employee benefits 2 288 10 192
Increase/(decrease) in provisions 6 481 564
Increase/(decrease) in financial liabilities (other than under the unified
funding approach)
(1 382) (3 516)
Increase/(decrease) in payables 4 898 (4 825)
Increase/(decrease) in accrued charges and deferred income (9 714) (9 359)
Prior year budgetary surplus taken as non-cash revenue (633) (2 519)
Remeasurements in employee benefits liabilities (non-cash movement
not included in statement of financial performance)
1 159 (6 877)
Other non-cash movements 27 (11)
Investing activities
(Increase)/decrease in intangible assets and property, plant and
equipment
(1 817) (1 938)
(Increase)/decrease in investments accounted for using the equity
method
(80) (52)
(Increase)/decrease in non-derivative financial assets at fair value
through surplus or deficit
(6 246) (7 329)
(Increase)/decrease in derivative financial assets at fair value through
surplus or deficit
(19) (107)
Financing activities
Increase/(decrease) in borrowings under the unified funding approach 144 900 109 600
NET CASHFLOW 23 547 (6 928)
Net increase/(decrease) in cash and cash equivalents 23 547 (6 928)
Cash and cash equivalents at the beginning of the year 39 616 46 544
Cash and cash equivalents at year-end 63 163 39 616
Annual accounts of the European Union 2024
40
STATEMENT OF CHANGES IN NET ASSETS
EUR million
Amounts to be called from Member States
Accumulated surplus/(deficit)
Other reserves Net assets
BALANCE AS AT 31.12.2022 (132 637) 1 312 (131 325)
Remeasurements in employee benefits liabilities (6 877) – (6 877)
Other 249 (260) (11)
2022 budget result credited to Member States (2 519) – (2 519)
Economic result of the year (71 437) – (71 437)
BALANCE AS AT 31.12.2023 (213 221) 1 052 (212 169)
Remeasurements in employee benefits liabilities 1 159 – 1 159
Other 94 (66) 27
2023 budget result credited to Member States (633) – (633)
Economic result of the year (97 208) – (97 208)
BALANCE AS AT 31.12.2024 (309 810) 986 (308 824)
Annual accounts of the European Union 2024
41
NOTES TO THE FINANCIAL STATEMENTS
Note that in the following tables amounts concerning the UK for MFFs up to the end of 2020 are still
shown under the heading 'Member States'. This is because although the UK withdrew from the EU on
1 February 2020, in accordance with the Withdrawal Agreement, it continued to have a financial
relationship with the EU equivalent to that of a Member State for these periods.
Annual accounts of the European Union 2024
42
1. SIGNIFICANT ACCOUNTING POLICIES
1.1. LEGAL BASIS AND ACCOUNTING RULES
The accounts of the EU are kept in accordance with Regulation (EU, Euratom) 2024/2509 of the European
Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general
budget of the Union (recast), OJ L, 2024/2509, 26.9.2024, referred to below as the ‘Financial Regulation’
(FR).
In accordance with Article 80 of the Financial Regulation, the EU prepares its financial statements on the
basis of accrual-based accounting rules that are based on International Public Sector Accounting
Standards (IPSAS). These accounting rules, adopted by the Accounting Officer of the Commission, have
to be applied by all the institutions and EU bodies falling within the scope of consolidation in order to
ensure the internal consistency of the EU consolidated accounts.
Application of new and amended European Union Accounting Rules (EAR)
Revised EAR effective for annual periods beginning on or after 1 January 2024
There are no new EAR which became effective for annual periods beginning on or after 1 January 2024.
New EAR adopted but not yet effective at 31 December 2024
There are no new EAR adopted but not yet effective at 31 December 2024.
1.2. ACCOUNTING PRINCIPLES
The objective of financial statements is to provide information about the financial position, performance
and cashflows of an entity that is useful to a wide range of users. For the EU as a public sector entity, the
objectives are more specifically to provide information useful for decision-making, and to demonstrate
the accountability of the entity for the resources entrusted to it. It is with these goals in mind that the
present document has been drawn up.
The overall considerations (or accounting principles) to be followed when preparing the financial
statements are laid down in EU accounting rule 1 ‘Financial Statements’ and are the same as those
described in IPSAS 1: fair presentation, accrual basis, going concern, consistency of presentation,
materiality, aggregation, offsetting and comparative information.
The qualitative characteristics of financial reporting are relevance, faithful representation (reliability),
understandability, timeliness, comparability and verifiability.
1.3. CONSOLIDATION
Scope of consolidation
The consolidated financial statements of the EU comprise all significant controlled entities, joint
arrangements and associates. The complete list of entities falling under the scope of consolidation, which
now comprises 54 controlled entities and 1 associate (unchanged compared to 2023), can be found in
note 9. Among the controlled entities are the EU institutions (including the Commission, but not the
European Central Bank) and the EU agencies (except those acting in the area of the common and foreign
security policy). The European Coal and Steel Community in Liquidation (ECSC i.L.) is also considered as
a controlled entity. The EU’s only associate is the European Investment Fund (EIF).
Entities falling under the scope of consolidation but immaterial to the EU consolidated financial
statements as a whole need not be consolidated or accounted for using the equity method where to do so
would result in excessive time or cost to the EU. These entities are referred to as ‘Minor entities’ and are
separately listed in note 9. In 2024, 11 entities have been classified as minor entities (2023: 10 entities).
Annual accounts of the European Union 2024
43
Controlled entities
In order to determine the scope of consolidation, the control concept is applied. Controlled entities are
entities for which the EU is exposed, or has right, to variable benefits from its involvement and has the
ability to affect the nature and amount of those benefits through its power over the other entity. This
power must be presently exercisable and must relate to the relevant activities of the entity. Controlled
entities are fully consolidated. The consolidation begins at the first date on which control exists, and ends
when such control no longer exists.
The most common indicators of control within the EU are: creation of the entity through founding treaties
or secondary legislation, financing of the entity from the EU budget, the existence of voting rights in the
governing bodies, audit by the European Court of Auditors and discharge by the European Parliament. An
individual assessment for each entity is made in order to decide whether one or all of the criteria listed
above are sufficient to result in control.
All material inter-entity transactions and balances between EU controlled entities are eliminated, while
unrealised gains and losses on such transactions are not material and so have not been eliminated.
Joint arrangements
A joint arrangement is an agreement of which the EU and one or more parties have joint control. Joint
control is the agreed sharing of control of an arrangement by way of a binding arrangement, which exists
only when decisions about the relevant activities require the unanimous consent of parties sharing
control. Joint agreements can be either joint ventures or joint operations. A joint venture is a joint
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, revenues and expenses, as well as
its share of assets, liabilities, revenues and expenses 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 whose funds 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 behalf of these entities.
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 in accordance with Article 249 of the Financial Regulation.
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 euro, unless stated otherwise, the euro being the
EU’s functional currency.
Transactions and balances
Foreign currency transactions are translated into euro using the exchange rates prevailing on the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency
Annual accounts of the European Union 2024
44
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.
Different conversion methods apply to property, plant and equipment and intangible assets, which retain
their value in euro at the rate that applied on the date that they were purchased.
Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into
euro on the basis of the European Central Bank (ECB) exchange rates applying on 31 December:
Euro exchange rates
Currency 31.12.2024 31.12.2023 Currency 31.12.2024 31.12.2023
BGN 1.9558 1.9558 RON 4.9743 4.9756
CZK 25.1850 24.7240 SEK 11.459 11.096
DKK 7.4578 7.4529 CHF 0.9412 0.9260
GBP 0.8292 0.8691 JPY 163.06 156.3300
HUF 411.3500 382.8 USD 1.0389 1.105
PLN 4.275 4.3395
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, impairment allowance for financial assets at amortised cost and for financial
guarantee contract liabilities, 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 that 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 (3-11 years).
The estimated useful lives of intangible assets depend on their specific economic lifetime or legal lifetime
determined by an agreement.
Annual accounts of the European Union 2024
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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
depreciated, as these assets are not yet available for use. Depreciation on other assets is calculated using
the straight-line method to allocate their cost less their residual values over their estimated useful lives,
as follows:
Type of asset Straight line depreciation rate
Buildings 4% to 10%
Space assets 8% to 25%
Plant and equipment 10% to 25%
Furniture and vehicles 10% to 25%
Computer hardware 25% to 33%
Other 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 balance sheet.
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.
Annual accounts of the European Union 2024
46
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
sheet date. The EU’s share of the investee’s surplus or deficit is recognised in the statement of financial
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 a 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
financial assets at fair value through surplus or deficit (‘FVSD’).
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 at initial recognition
The classification depends on two criteria:
— The financial assets management model. This requires an assessment of how the EU manages
the financial assets to generate cash flows and to achieve its objectives and how it evaluates the
performance of financial assets.
— The asset contractual cash-flow characteristics. This requires an assessment of whether the
contractual cash flows are solely payments of principal and interest on the principal outstanding.
The interest is the consideration for the time value of money, credit risk and other basic lending
risks and costs.
Following an assessment based on these criteria, the financial assets can be classified in three categories:
Financial assets at amortised cost (AC), financial assets at fair value through net assets/equity (FVNA) or
financial assets at fair value through surplus or deficit (FVSD).
Financial assets with contractual cash flows that represent solely principal and interest are classified
depending on the entity’s management model. If the management model is to hold the financial assets in
order to collect contractual cash flows, the financial assets are classified at AC. If the management model
is to hold the financial assets both to collect contractual cash flows and to sell the financial assets, the
classification is FVNA. If the management model is different to these two models (e.g. the financial assets
are held for trading or held in a portfolio managed and evaluated on a fair value basis), the financial
assets are classified as FVSD.
Annual accounts of the European Union 2024
47
Financial assets with contractual cash flows that do not represent only principal and interest, but
introduce exposure to risks and volatility other than those present in a basic lending arrangement (e.g.
changes in equity prices), are classified as FVSD regardless of the management model.
At initial recognition, the EU classifies the financial assets as follows:
(a) Financial assets at amortised cost
The EU classifies in this category:
— cash and cash equivalents;
— loans (including term deposits with original maturity of more than three months);
— exchange receivables, except for the financial guarantee contract receivable leg classified as
financial asset at fair value through surplus or deficit.
These non-derivative financial assets meet two conditions: The EU’s management model is to hold them
in order to collect the contractual cash flows. Furthermore, on specified days, there are contractual cash
flows that represent only principal and interest on the outstanding principal.
Financial assets at amortised cost are included in current assets, except for those with maturity of more
than 12 months from the reporting date.
(b) Financial assets at fair value through net assets/equity
These non-derivatives financial assets have contractual cash flows that represent only principal and
interest on the outstanding principal. In addition, the management model is to hold the financial assets
both to collect contractual cash flows and to sell the financial assets.
Assets in this category are classified as current assets, if they are expected to be realised within 12
months from the reporting date.
The EU does not hold such assets at the end of this reporting period.
(c) Financial assets at fair value through surplus or deficit
The EU classifies the following financial assets as FVSD because the contractual cash flows do not
represent only principal and interest on the principal:
— derivatives;
— equity investments and investments in money market funds or in pooled portfolio funds;
— other equity-type investments (e.g. risk capital operations).
In addition, the EU classifies the debt securities it holds as FVSD because the portfolios of debt securities
are managed and evaluated on a portfolio fair value basis (e.g. Common Provisioning Fund under Article
215 of the Financial Regulation).
Assets in this category are classified as current assets, if they are expected to be realised within 12
months from the reporting date.
Initial recognition and measurement
Purchases of financial assets at fair value through net assets/equity and at fair value through surplus or
deficit are recognised on their trade date, i.e. the date on which the EU commits to purchase the asset.
Cash equivalents and loans are recognised when cash is deposited in a financial institution or advanced to
borrowers.
Financial assets are initially measured at fair value. For all financial assets not carried at fair value
through surplus or deficit, the transactions costs are added to the fair value at initial recognition. For
financial assets carried at fair value through surplus or deficit the transaction costs are expensed in the
statement of financial performance.
Annual accounts of the European Union 2024
48
The fair value of a financial asset on initial recognition is normally the transaction price unless the
transaction is not at arm’s length i.e. at no or at nominal consideration for public policy purposes. If that
is the case, the difference between the fair value of the financial instrument and the transaction price is a
non-exchange component which is recognised as an expense in the statement of financial performance.
In this case, the fair value of a financial asset is derived from current market transactions for a directly
equivalent instrument. If there is no active market for the instrument, the fair value is derived from a
valuation technique that uses available data from observable markets.
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 under the Recovery and Resilience Facility and loans for financial assistance are initially
measured at their nominal amount, with the transaction price considered the fair value of the loan. This is
because:
— The ‘market environment’ for EU lending is very specific and different from the capital market
used to issue commercial or government debt. As lenders in these markets have the opportunity
to choose alternative investments, the opportunity of doing so is factored into market prices.
However, this opportunity for alternative investments does not exist for the EU, which is not
allowed to invest money in the capital markets; it only borrows funds for the purpose of lending.
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 should be the interest rate
charged.
Subsequent measurement
Financial assets at amortised cost are subsequently measured at amortised cost using the effective
interest method.
Financial assets at fair value through net assets/equity are subsequently measured at fair value. Gains
and losses from changes in the fair value are recognised in the fair value reserve, except for foreign
exchange translation differences on monetary assets, which are recognised in the statement of financial
performance.
Financial assets at fair value through surplus or deficit are subsequently measured at fair value. Gains
and losses from changes in the fair value (including those stemming from foreign currency translation
and any interest earned) are included in the statement of financial performance in the period in which
they arise.
Fair value at subsequent measurement
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 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.
Impairment of financial assets
The EU recognises and measures an impairment loss for expected credit losses on financial assets that
are measured at amortised cost and at fair value through net assets/equity.
For assets at amortised cost, the asset’s carrying amount is reduced by the amount of the impairment
loss which is recognised in the statement of financial performance. For assets at fair value through net
assets/equity, the loss allowance is recognised in net assets/equity and does not reduce the carrying
Annual accounts of the European Union 2024
49
amount of the financial asset in the balance sheet. If, in a subsequent period, the amount of the
impairment loss decreases, the previously recognised impairment loss is reversed through the statement
of financial performance.
The expected credit loss (ECL) is the present value of the difference between the contractual cash flows
and the cash flows that the EU expects to receive. The ECL incorporates reasonable and supportable
information that is available without undue cost or effort at the reporting date.
Staging policies
The ECL is measured with a three stage model that takes into account probability weighted default events
during the lifetime of the financial asset and the evolution of credit risk since the origination of the
financial asset. For loans, origination is the date of the irrevocable loan commitment.
The allocation to stages mainly depends on the counterparty’s credit rating. The staging model relies on a
relative assessment of credit risk, that is, the EU may have different loans with the same counterparty in
different stages, depending on the counterparty’s credit risk at origination. The EU, having a unique
institutional status, lends money to its Member States or to sovereigns in difficulty. As a result, the EU
also applies a qualitative assessment of the credit risk based on monitoring the economic situation of
borrowers in difficulty.
Stage 1 – No significant increase in credit risk
Loans to counterparties with credit ratings in the investment grade (i.e. between AAA (Aaa) and BBB-
(Baa3) on the S&P/Fitch (Moody’s) rating scale or an equivalent external or internal rating) at the
reporting date, are considered low credit risk loans, and thus held in Stage 1, except if they are overdue
for more than 30 days (see Stage 2). In addition, any loans for which a significant increase in credit risk
did not occur, as defined below, are classified to Stage 1. For the loans in Stage 1, the impairment
allowance is measured at the level of the 12 month expected credit losses.
Stage 2 – Significant increase in credit risk (SICR)
In order to determine whether there has been a significant increase in the credit risk since origination,
and thus whether a move to Stage 2 applies, the EU applies a combination of quantitative and qualitative
assessments:
— all loans for which contractual payments are overdue by between 31 and 90 days, are moved to
Stage 2;
— for counterparties with credit ratings between AAA (Aaa) and BB- (Ba3) at the initial recognition
date: Unless the low risk case (above in Stage 1) applies, the deterioration is considered
significant if the difference between the rating at origination and that at the reporting date is
equal or superior to 3 notches;
— for counterparties with credit ratings of B+ (B1) or B (B2) at initial recognition date: The
deterioration is considered significant if the difference between the initial rating and the current
rating is equal or superior to 2 notches;
— for counterparties with credit ratings of B- (B3) or lower (in CCC/Caa – C range) at the initial
recognition date: The deterioration is considered significant if the difference between the initial
rating and the current rating at the reporting date is equal or superior to 1 notch; and
— loans originated before the transition to the revised EAR 11 (i.e. 1 January 2021), for which no
information on the credit risk at initial recognition is available without undue cost and effort are
classified to Stage 2.
For loans in Stage 2, the impairment allowance is measured at the level of lifetime expected credit losses.
Stage 3 – Credit impaired loans
Loans are classified in Stage 3 when they are 90 days past due or when one or more events occur after
the loan origination that have a detrimental impact on the estimated future cash flows of that financial
asset. For example, a loan is classified to Stage 3, if:
— it is becoming probable that a borrower will enter bankruptcy or other financial reorganisation;
— the borrower has a credit rating of D published by an external rating agency; and
Annual accounts of the European Union 2024
50
— the borrower is in default under any financial obligation towards the EU, or in the case of loans
for financial assistance, if the borrower is in default to any other international organisation
financing the programme.
For loans in Stage 3, the impairment allowance is measured at the level of lifetime expected credit losses.
Purchased or originated as credit impaired (POCI)
The EU also holds POCI loans. These are defaulted loans where the EU paid a guarantee call to the
implementing partner. For these loans, all rights have been subrogated to the EU. The EU recognises
them on its balance sheet at fair value at initial recognition. The EU classifies them as POCI loans and
calculates an impairment allowance based on the lifetime ECL. Under the relevant agreements between
the EU and the implementing partners, recovery proceedings are carried out on behalf of the EU with the
aim of recovering any sums due.
(a) Loans to sovereigns
The EU bases its assessment of loans’ impairment, in the context of the nature of the EU’s financing and
its unique institutional status.
For the impairment of loans to non-Member States, the EU calculates the expected credit losses using
external credit quality data, however taking into account its preferred creditor status, which reduces the
credit risk. For the calculation of the present value, the discount rate is the loan’s original effective
interest rate. If a loan has a variable interest rate, the discount rate is the current effective interest rate
determined under the contract.
For loans to Member States, the EU has never incurred any impairment losses, nor faced any defaults on
payments. For these loans, in addition to the preferred creditor status, the EU takes into account the
relationships with its Member States. These two elements, in principle, guarantee the full recovery of the
loans to Member States, on maturity. Therefore, the EU considers the expected credit losses from loans
to Member States to be negligible, and a statistical approach to calculate expected credit losses as
inappropriate for these loans. Thus no expected credit losses are recognised in the statement of financial
performance for the loans to Member States.
(b) Receivables
The EU measures the impairment loss at the amount of lifetime ECL, using practical expedients (e.g.
provision matrix).
(c) Cash and cash equivalents
The EU holds cash and cash equivalents in current bank accounts and term deposits of up to three
months. The cash is mainly held in banks with very high credit ratings (see note 6.6), thus having very
low default probabilities. Given the short duration and low default probabilities, the expected credit losses
from cash and cash equivalents are negligible. As a result, no impairment allowance is recognised for
cash equivalents.
Derecognition
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. Sales
of financial assets at fair value through net assets/equity and through surplus or deficit are recognised on
their trade date.
1.5.6. Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in,
first-out (FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct
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.
Annual accounts of the European Union 2024
51
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 in accordance with the principle of sound financial management over a
period laid down in the particular contract, decision, agreement or basic act. The float or advance is
either used for the purpose for which it was provided during the period laid down in the agreement or it is
repaid. If the beneficiary does not incur eligible expenditure, they have the obligation to return the pre-
financing to the EU. As the EU retains control over the pre-financing 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 relevant agreement. An
estimate of the accrued interest revenue, based on the most reliable information, is made at the end of
the year 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 contributions to EU trust funds (as established under Article 238 of the Financial Regulation) not
consolidated in the European Commission, or to other unconsolidated entities, are classified as pre-
financing since their purpose is to give a float to the trust fund to allow it to finance specific actions
determined by 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 are financial assets measured at amortised cost, except for
certain amounts of the financial guarantee contract receivable leg which are classified as financial assets
at fair value through surplus or deficit (see note 1.5.5).
Recoverables from non-exchange transactions are carried at fair value as at the date of acquisition 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 on the treatment of accrued revenue at the end of the year. Amounts displayed
and disclosed as recoverables from non-exchange transactions are not financial instruments, as they do
not arise from a contract that would give rise to a financial liability or equity instrument. However, in the
notes to the financial statements recoverables from non-exchange transactions are disclosed together
with receivables from exchange transactions where appropriate.
Annual accounts of the European Union 2024
52
1.5.9. Cash and cash equivalents
Cash and cash equivalents are financial assets at amortised cost 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 leave and paid
sick leave, 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, as well as health
insurance coverage provided under the Joint Sickness Insurance Scheme (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:
— Pension Scheme of European Officials (PSEO): The benefits granted under this notionally funded20
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.
— Joint Sickness Insurance Scheme (JSIS): Under this scheme, the EU provides health insurance
coverage for staff of the European Commission, EU institutions, agencies and other 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 and former 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, European Court
of Justice, Court of Auditors, Council, European Parliament, European Ombudsman, and the European
Data Protection Supervisor. The EU provides health coverage to the members of the EU institutions
through 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 carried out 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.
20
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
is registered in the annual accounts of the European Union. Member States jointly guarantee the payment of the
benefits pursuant to Article 83 of the Staff Regulations and Article 4 (3) of the Treaty on European Union (see
COM(2018)829 for a detailed description of the scheme).
Annual accounts of the European Union 2024
53
The post-employment benefits provided to EU staff are incorporated in a single plan comprising 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 in the net defined benefit liabilities 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 heading ‘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 contract liabilities.
Borrowings
Borrowings are composed of borrowings from credit institutions and debts evidenced by certificates (EU
Bonds, EU deposits and EU Bills). 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. The transaction costs incurred by the EU and then
recharged to the beneficiary of the loan are immaterial and are directly recognised in the statement of
financial performance.
Borrowings are classified as non-current liabilities, except for maturities less than 12 months after the
balance sheet date.
Annual accounts of the European Union 2024
54
Financial liabilities at fair value through surplus or deficit
These include derivatives where the fair value is negative. They follow the same accounting treatment as
financial assets at fair value through surplus or deficit, see note 1.5.5.
Financial guarantee contract liabilities
The EU recognises a financial guarantee contract (FGC) liability when it enters into a contract that
requires the EU to make specified payments to reimburse the guarantee holder for a loss it incurs
because a specified debtor fails to make payment when due in accordance with the original or modified
terms of a debt instrument. Where the guarantee contract requires the EU to make payments in response
to price changes to financial instruments or changes to other underlyings, the guarantee contract is a
derivative i.e. a financial liability at fair value through surplus or deficit. All other guarantee contracts are
accounted for as financial provisions.
FGC liabilities are initially recognised at fair value. This equals the net present value of the premium
receivable, if it is at market terms. When no guarantee premium is charged or where the consideration is
not fair value, the fair value is determined based on the quoted prices in an active market for FGCs
directly equivalent to that entered into the financial guarantee liability, if available, or using a valuation
technique. If no reliable measure of fair value can be determined either by direct observation of an active
market or through another valuation technique, the financial guarantee contract liability is initially
measured at the amount of the lifetime expected credit losses.
The subsequent measurement depends on the evolution of the credit risk exposure from the financial
guarantee, which is monitored by allocating the FGC to stages. The key risk indicator for the allocation of
FGC to stages is the credit rating of the guaranteed debt. The staging model compares the credit rating
at origination to the credit rating at the reporting date.
If there is no significant increase in credit risk (‘stage 1’), financial guarantee liabilities are measured at
the higher of the 12 months expected credit losses and the amount initially recognised less, when
appropriate, cumulative amortisation. If there is a significant increase in credit risk (‘stage 2’), financial
guarantee liabilities are measured at the higher of the lifetime expected credit losses and the amount
initially recognised less, when appropriate, cumulative amortisation.
The staging criteria for guaranteed debt in financial guarantee contracts covering a single debt
instrument are the same as those for financial assets at amortised cost (see note 1.5.5).
The staging criteria for the guaranteed debt in portfolio guarantees follow the same staging criteria as for
financial assets at amortised cost with the following exceptions:
— the weighted average credit rating of the guaranteed portfolio, or rating of the guarantee, is
considered for the staging criteria, and not the rating of individual debt instruments separately.
— for guarantees with a credit rating between AAA (Aa1) and BB- (Ba3) at initial recognition date:
the deterioration is considered significant if the difference between the rating at origination and
that at the reporting date is equal or superior to 2 notches.
— for guarantees with a credit rating between B+ (B1) or lower at initial recognition date: the
deterioration is considered significant if the difference between the rating at origination and that
at the reporting date is equal or superior to 1 notch.
Alternatively, if the credit ratings are not available but there is an estimation of the expected annual
claims at initial recognition, the actual level of claims compared to the initial estimate is also considered a
reasonable risk indicator for the assessment of significant increase in credit risk (SICR).
In addition to the above criteria, the EU may apply a qualitative assessment of the SICR, based on
additional, reasonable and justified, information available.
FGC originated before the transition to the revised EAR 11 (i.e. before 1 January 2021) for which no
information on the credit risk at initial recognition is available without undue cost and effort are classified
to Stage 2.
Classification to Stage 3 and POCI does not apply to FGC.
Financial guarantee contracts are classified as current liabilities, except if the EU has an unconditional
right to defer the settlement of the liability for at least 12 months after the reporting date.
Annual accounts of the European Union 2024
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Contributions with conditions
EU trust funds that are considered as part of the Commission’s operational activities (i.e. trust funds
Madad and Colombia) 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 distribution of the remaining resources will be decided by the
trust fund board.
The same measurement principles apply to the external contributions to the EU programmes, if such
contributions are received with the condition to use the resources as stipulated in the contribution
agreements or otherwise to return them to the contributor.
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 eligible amount.
Payables arising from the purchase of goods and services are recognised at invoice reception for the
original amount and the corresponding eligible 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.
Accrued expenses are calculated in accordance with detailed operational and practical guidelines issued
by the Commission which aim to ensure that the financial statements provide a faithful representation of
the economic and other phenomena they purport to represent. By analogy, if a 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 Union 2024
56
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 as follows:
GNI-based resources, VAT and Plastics own resources
Revenue is recognised for the period for which the Commission sends out a call for funds to the Member
States claiming their contribution. The revenue is measured at its ‘called amount’. As VAT, GNI and
Plastics own resources are based on estimates of the data for the budgetary year concerned, they may be
revised since 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 adopted and it is
officially notified to the addressee. After the decision to impose a fine, the fined entities have two months
from the date of notification:
— 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
— not to accept the decision, in which case they challenge it in accordance with EU law.
Even if appealed, the fine must be paid within the three month time limit, 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.
If 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 is given instead, the outstanding
recoverable is written down.
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 Union 2024
57
the provision of services is recognised by reference to the stage of completion of the transaction at the
reporting date.
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 interest rate 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 is considered credit impaired (‘stage 3’), the
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.
Revenue and expense from financial assets through surplus or deficit
This refers to the fair value gains (revenue) and fair value losses (expense) from these financial assets,
including those stemming from foreign exchange translation. For interest-bearing financial assets, this
also includes interest. See also note 3.9.
Revenue from financial guarantee contracts
The revenue from financial guarantee contracts (guarantee premium) is recognised over the time the EU
stands ready to compensate the holder of the financial guarantee contract for the credit loss it may incur.
The amortisation schedule applied takes into account the passage of time and the volume of the
guaranteed exposure. Revenue from financial guarantee contracts include also amortisation of financial
guarantee contracts liability in cases when the guarantee was provided at no or nominal consideration.
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: (i) entitlements, (ii) transfers under agreement and
discretionary grants, as well as (iii) 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 the relevant 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.
Annual accounts of the European Union 2024
58
1.7. CONTINGENT ASSETS AND LIABILITIES
1.7.1. Contingent assets
A contingent asset is a possible asset that arises from past events and whose 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 whose 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 circumstance 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.
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, investing and
financing activities.
Operating activities are the activities of the EU other than investing or financing activities. As such, they
account for the majority of the activities carried out by 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 as they are part of the general objectives and thus daily
operations of the EU. The objective is to show the real investments made by the EU.
Financing activities are activities that result in changes in the size and composition of borrowings other
than those granted to beneficiaries on a back-to-back basis or for the acquisition of properaty, plant and
equipment (which are included under operating activities).
Annual accounts of the European Union 2024
59
2. NOTES TO THE BALANCE SHEET
ASSETS
2.1. INTANGIBLE ASSETS
EUR million
Gross carrying amount at 31.12.2023 2 085
Additions 331
Disposals (152)
Transfer between asset categories 0
Other changes (7)
Gross carrying amount at 31.12.2024 2 257
Accumulated amortisation at 31.12.2023 (1 109)
Amortisation charge for the year (191)
Amortisation written back -
Disposals 137
Transfer between asset categories 0
Other changes 0
Accumulated amortisation at 31.12.2024 (1 162)
Net carrying amount at 31.12.2024 1 095
Net carrying amount at 31.12.2023 976
The above amounts relate primarily to computer software.
2.2. PROPERTY, PLANT AND EQUIPMENT
The space assets category covers operational fixed assets related to the two EU space programmes: the
Global Navigation Satellite Systems (GNSS), i.e. Galileo and European Geostationary Navigation Overlay
System (EGNOS), and the Copernicus European Earth observation programme. Assets of the space
systems which are not yet operational are included under the heading ‘Assets under construction’. The
assets related to the EU space programmes are being built with the assistance of the European Space
Agency (ESA).
For Galileo, the constellation currently includes 30 satellites. The Galileo operational fixed assets,
covering both satellites and ground installations, amounted to EUR 2 987 million at 31 December 2024,
net of accumulated depreciation (2023: EUR 2 486 million). The remaining assets under construction
total EUR 2 145 million (2023: EUR 2 479 million).
Regarding Copernicus, 8 satellites are operational with 17 satellites and instruments under construction.
The total value of Copernicus operational fixed assets is EUR 492 million (2023: EUR 438 million), net of
accumulated depreciation. A further EUR 3 520 million related to Copernicus satellites is recognised as
assets under construction (2023: EUR 3 078 million).
Fixed assets related to the EGNOS ground infrastructure of EUR 160 million (2023: EUR 187 million) are
also included under the heading ‘Space assets’. In addition, EGNOS assets under construction amount to
EUR 345 million (2023: EUR 289 million).
On 29 April 2024, the European Commission sold 23 of its buildings in Brussels to SFPIM (‘Société
Fédérale de Participations et d’Investissement’ – the national Belgian Sovereign Fund) for an overall
selling price of EUR 900 million. The net book value of the buildings concerned was EUR 432 million,
resulting in a gain of EUR 468 million which was fully recognised at the time of the sale. The proceeds of
the sale will be reinvested in the financing of new buildings, the repayment of remaining financial
liabilities and the renovation of existing buildings. Although the sale has been signed for all 23 buildings,
the exit will be gradual, with the last buildings being vacated in September 2029.
Annual accounts of the European Union 2024
60
Property, plant and equipment
EUR million
Land and
Buildings
Space
assets
Plant and
Equipment
Furniture and
Vehicles
Computer
Hardware
Other
Finance
leases
Assets under
construction
Total
Gross carrying amount at 31.12.2023 7 034 7 702 575 283 863 370 2 378 6 308 25 513
Additions 57 4 25 31 83 22 6 1 786 2 014
Disposals (1 056) (0) (117) (59) (234) (87) (28) (0) (1 581)
Transfer between asset categories 494 1 351 0 – 2 3 (281) (1 569) (0)
Other changes (3) – 0 0 1 (1) – 3 (1)
Gross carrying amount at 31.12.2024 6 528 9 056 483 255 714 308 2 075 6 528 25 945
Accumulated depreciation at 31.12.2023 (4 417) (4 591) (507) (214) (681) (288) (1 416) (12 114)
Depreciation charge for the year (141) (826) (27) (16) (89) (18) (77) (1 195)
Depreciation written back – – – 1 (0) – – 1
Disposals 611 0 111 52 197 82 23 1 076
Transfer between asset categories (159) – – (0) (2) – 161 0
Other changes 0 – (0) (0) (0) (0) – (0)
Accumulated depreciation at 31.12.2024 (4 106) (5 417) (423) (177) (575) (225) (1 309) (12 232)
NET CARRYING AMOUNT AT 31.12.2024 2 422 3 639 59 77 139 83 766 6 528 13 713
NET CARRYING AMOUNT AT 31.12.2023 2 617 3 111 68 69 181 82 962 6 308 13 399
Annual accounts of the European Union 2024
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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. The EIF is the EU's financial institution
specialising in providing risk capital and guarantees to Small and Medium-sized Entities (SMEs). The EIF
operates as a private-public partnership, whose members are the European Investment Bank (EIB), the
EU and a group of financial institutions.
At 31 December 2024, the EU holds 29.7% of ownership interests in the EIF (2023: 29.7%) and 29.7%
of the voting rights (2023: 29.7%). In accordance with its statutes, the EIF is required to allocate at least
20% of its annual net result to a statutory reserve, until the aggregate reserve amounts to 10% of
subscribed capital. This reserve is not available for distribution.
The table below shows the current year’s movement of the EU’s participation in the EIF.
EUR million
European Investment Fund
Participation at 31.12.2023 1 365
Contributions –
Dividends received (7)
Share of net result 83
Share in the net assets 4
Participation at 31.12.2024 1 446
EIF summarised financial information:
EUR million
31.12.2024 31.12.2023
Total EIF Total EIF
Assets 7 789 6 554
Liabilities (2 923) (1 959)
Surplus/(deficit) 280 234
The reconciliation of the above summarised financial information to the carrying amount of the interest
held in the EIF is as follows:
EUR million
31.12.2024 31.12.2023
Net assets of the associate 4 866 4 595
EC ownership interests in EIF 29.7% 29.7%
Carrying amount 1 446 1 365
The EU, represented by the Commission, has paid in 20% of its subscribed shares in the EIF capital at
31 December 2024, the uncalled amount is as follows:
EUR million
Total EIF capital EU subscription
Total share capital 7 370 2 190
Paid-in (1 474) (438)
Uncalled 5 896 1 752
Annual accounts of the European Union 2024
62
2.4. FINANCIAL ASSETS
EUR million
Note 31.12.2024 31.12.2023
Non-current
Financial assets at amortised cost 2.4.1 269 903 242 265
Financial assets at fair value through surplus or deficit 2.4.2 39 058 32 018
308 961 274 283
Current
Financial assets at amortised cost 2.4.1 13 677 4 612
Financial assets at fair value through surplus or deficit 2.4.2 5 700 6 476
19 377 11 088
Total 328 338 285 370
2.4.1. Financial assets at amortised cost
EUR million
Note 31.12.2024 31.12.2023
Loans for NGEU and financial assistance 2.4.1.1 283 114 246 622
Other loans 2.4.1.2 466 255
Total 283 580 246 877
Non-current 269 903 242 265
Current 13 677 4 612
2.4.1.1. Loans for NGEU and financial assistance
EUR million
31.12.2024 31.12.2023
Loans to Member States 251 457 221 883
Loans to third countries 31 656 24 739
Total at 31.12.2024 283 114 246 622
Non-current 269 782 242 144
Current 13 332 4 477
Loans to Member States
EUR million
NGEU SURE EFSM BOP EURATOM Total
Total at 31.12.2023 79 589 98 984 43 095 201 13 221 883
New loans (nominal) 29 446 – 1 800 – – 31 246
Repayments – – (2 600) – (13) (2 613)
Changes in carrying
amount
1 085 (145) 2 0 (0) 942
Changes in impairment – – – – – –
Total at 31.12.2024 110 120 98 839 42 297 201 – 251 457
Non-current 108 686 90 539 39 517 – – 238 742
Current 1 434 8 300 2 780 201 – 12 715
The nominal value of loans to Member States at 31 December 2024 is EUR 249.2 billion (2023:
EUR 220.6 billion), out of which EUR 108.7 billion refer to the NGEU loans for RRF and REPowerEU.
In this table, and in the table for loans to third countries further below, the line ‘Changes in carrying
amount’ corresponds to the change in accrued interest and the change in premiums/discounts (new
premiums/discounts and amortisation).
The programmes SURE, EFSM, Euratom and BOP have been implemented on a ‘back-to-back’ basis. This
means that the loans were financed by equivalent borrowings, with the same terms and conditions. The
Annual accounts of the European Union 2024
63
maturities are the same, the issue premiums/discounts and the costs are recharged to the loan
beneficiary. At maturity, the loan beneficiary reimburses the Commission and the Commission repays the
borrowing. For the NGEU loans there is no back-to-back relationship between the terms of the loans and
the borrowings. These loans are funded from the unified funding approach, explained in note 2.11.1.1.
NGEU (RRF/REPowerEU)
The RRF is a temporary instrument, established in 2021, to help the Member States’ economies recover
from the coronavirus pandemic and become resilient to green and digital transitions. Under the EU
Recovery Instrument (NGEU), the Commission borrows funds, which the RRF uses to finance Member
States’ reforms and investments. These have to be in line with EU priorities and have to address the
challenges identified in country-specific recommendations under the European Semester framework of
economic and social policy coordination. The financing can be either a loan (repayable support) or a grant
(non-repayable support, see note 2.5). The Member States can receive financing up to a previously
agreed allocation for loans and grants. To benefit from the support, the Member States have to submit
their national recovery and resilience plans to the European Commission. Each plan sets out the reforms
and investments to be implemented by the end of 2026, defining clear milestones and targets to be
analysed by the European Commission and approved by the European Council. The RRF loans can be
disbursed until 31 December 2026, but only after the achievement of the agreed milestones and targets.
In 2023, the RRF Regulation was amended and enabled the Member States to add a REPowerEU
chapter to their national recovery and resilience plans. The Member States can finance investments and
reforms in order to achieve the REPowerEU objectives. The financing can also be with loans, using RRF
loan resources not yet requested by the Member States.
At 31 December 2024, the signed loan agreements were EUR 290.9 billion out of which EUR 108.7 billion
were already disbursed.
Support to mitigate Unemployment Risks in an Emergency (SURE)
SURE provided financial assistance aiming to maintain people in work and support jobs affected by the
coronavirus pandemic. The availability of the instrument ended on 31 December 2022. The loans
disbursed were EUR 98.4 billion (nominal value) and there are no pending disbursements.
European Financial Stabilisation Mechanism (EFSM)
The EFSM enabled the granting of financial assistance to a Member State in financial difficulties. The
programme has expired except for specific transactions such as the maturity extension of the loans. In
2024, Ireland repaid EUR 0.8 billion of EFSM loan principal due, while Portugal requested a maturity
extension of EUR 1.8 billion. The new loan was financed by a long term bond maturing in 2028.
Balance of Payments (BOP)
This is a policy-based financial instrument that provides medium-term financial assistance to Member
States that have not adopted the euro.
European Atomic Energy Community loans (Euratom)
The European Atomic Energy Community lends money to both Member States and non-EU countries, and
to entities of both, to finance projects relating to energy installations. There are no outstanding amounts
relating to Member States or one of their entities.
Loans to third countries
EUR million
MFA
Ukraine
Facility
EURATOM Total
Total at 31.12.2023 24 528 – 210 24 739
New loans (nominal) 1 145 13 112 – 14 257
Repayments (600) – – (600)
Changes in carrying amount (19) 205 (0) 187
Changes in impairment (1 224) (5 694) (8) (6 926)
Total at 31.12.2024 23 831 7 623 203 31 656
Non-current 23 420 7 418 202 31 040
Current 411 205 1 617
Annual accounts of the European Union 2024
64
The nominal value of loans to third countries at 31 December 2024, was EUR 47.2 billion (2023:
EUR 33.5 billion).
In this table, the line ‘Changes in impairment’ corresponds to the remeasurement of the expected credit
losses as at 31 December 2024. The line ‘Changes in carrying amount’ corresponds to the change in
accrued interests and the change in premiums/discounts (new premiums/discounts and amortisation).
The Euratom operates on a ‘back to back’ basis.
Until the end of 2022, the MFA loans were funded under the back to back approach, whereas with the
implementation of the MFA+ programme in 2023, new loans under the MFA will mainly be implemented
using the unified funding approach explained in note 2.11.1.1. Any new programmes such as the
Ukraine Facility will be also funded with the unified funding approach.
Macro-Financial Assistance
The MFA refers to loans for financial assistance to partner countries experiencing a balance of payment
crisis.
The total nominal exposure of MFA loans outstanding at year end amounted to EUR 33.7 billion, out of
which EUR 29.0 billion was to Ukraine.
As at 31 December 2024, the impairment allowance for MFA loans was EUR 10.2 billion (2023:
EUR 9.0 billion), out of which EUR 10.1 billion refer to the loans to Ukraine. While all amounts due in
2024 from Ukraine were paid on time and at the moment of preparation of the annual accounts there is
no overdue payments, in accordance with the accounting rules, the impairment reflects the life-time
expected credit losses estimated with a particular prudence due to significant uncertainties involved.
In October 2024, Regulation (EU) 2024/277321
was adopted establishing the Ukraine Loan Cooperation
Mechanism (ULCM) and authorising a new MFA for Ukraine. Under the ULCM, extraordinary revenues
originating from immobilised Russian sovereign assets will be used to grant non-repayable support to
Ukraine with the objective to assist the country in repaying new bilateral loans provided by the G7
partners and the EU under this initiative. The EU signed the MFA loan agreement with Ukraine in
December 2024 for an amount of EUR 18.1 billion to be disbursed in 2025. As all policy conditions for
disbursement were met by Ukraine by year-end, the MFA loan under ULCM was considered as irrevocably
committed leading to recognition of a provision for expected credit losses of EUR 7.1 billion as at
31 December 2024 (see also note 2.10).
In addition, there were EUR 95 million undrawn amounts conditionally commited from other MFA loan
agreements at year-end (2023: EUR 95 million).
In 2024, the EU granted EUR 763 million of interest rate subsidies to Ukraine for the interest accrued on
the exceptional MFA and MFA+ loans. This constitutes a modification of the loan’s terms (see also notes
3.15 and 6.6), and is included under the ‘Changes in carrying amount’ in the table above.
Ukraine Facility loans
The Ukraine Facility Regulation22
is a new instrument adopted in 2024 that offers up to EUR 50 billion in
financial support to Ukraine, including up to EUR 33 billion of sovereign loans, to be disbursed by the end
of 2027. EUR 13.1 billion of loans were disbursed to Ukraine in 2024.
The impairment allowance is calculated like for the MFA loans to Ukraine and total EUR 5.7 billion at
31 December 2024. There are EUR 19.9 billion conditional undrawn amounts from signed loan
agreements at year end.
European Atomic Energy Community loans (Euratom)
The European Atomic Energy Community lends money to both Member States and non-Member States,
and to entities of both, to finance projects relating to energy installations. The total outstanding amount
relates to loans to Energoatom, guaranteed by the Ukrainian state. For these loans an impairment
allowance of EUR 98 million has been recognised. There are no undrawn amounts from signed loan
agreements.
21
Regulation (EU) 2024/2773 of the European Parliament and of the Council of 24 October 2024 establishing the
Ukraine Loan Cooperation Mechanism and providing exceptional macro-financial assistance to Ukraine (OJ L,
28.10.2024).
22
Regulation (EU) 2024/792 of the European Parliament and of the Council of 29 February 2024 establishing the
Ukraine Facility (OJ L, 29.2.2024), hereafter referred to ‘Ukraine Facility Regulation’.
Annual accounts of the European Union 2024
65
EU budget guarantee for loans to Member States and third countries.
The EU budget guarantees the borrowings issued by the EU which finance the loans to Member States
and third countries. If there would be unpaid loan amounts in the future, the EU budget may have to
repay the related borrowing amounts.
— Borrowings for NGEU, EFSM, BOP, MFA+ and Ukraine Facility are guaranteed solely by the EU
budget;
— Borrowings for SURE are guaranteed by the EU budget and underpinned by Member States
guarantees of EUR 25 billion;
— Borrowings for MFA loans to third countries are firstly covered by the CPF (see note 2.4.2.1) and
then by the EU budget, with exception of the MFA exceptional financial assistance loans to
Ukraine of EUR 6 billion that are 61% covered by guarantees provided by the Member States
after the first 9% of losses to be covered by CPF; and
— Borrowings for Euratom are firstly covered by the by 3rd
party guarantees, then by CPF (see note
2.4.2.1), and then by the EU budget.
For more details, see note 6.7.
UK obligations arising from its departure from the EU
In accordance with Article 143 of the Withdrawal Agreement, the UK is liable to the Union for its share of
contingent financial liabilities related to the loans for financial assistance (EFSM, MFA, BOP and Euratom)
approved/decided by the withdrawal date, 31 January 2020. Article 143 requires that in case of a default
under a loan for financial assistance that has been approved before the withdrawal date, the UK would be
liable to the Union for its share of payments made by the Union under the defaulted operation, unless
this could be covered by the UK share of provisioning held in the Guarantee Fund for external actions
compartment of the CPF where this is relevant (i.e. MFA and Euratom loans in third countries) – see note
4.1.1.
The EU’s outstanding contingent liability relating to the above loans for financial assistance amounted to
EUR 53.9 billion as at the withdrawal date. Following repayments since that date, the value of these loans
covered by the EU guarantee at 31 December 2024 is EUR 47.4 billion – the UK’s share of this is EUR 5.9
billion.
2.4.1.2. Other loans
These include 3 types of loans:
a) Loans granted from EU budget programmes (e.g. the Agriculture and Electrification Financing
initiatives and the EU Employment and Social Innovation programme). These loans total
EUR 75 million as at 31 December 2024 (2023: EUR 77 million).
b) Subrogated loans: These are loans disbursed by the EIB and guaranteed by the EFSI and ELM
programmes. The loans defaulted, the Commission paid the guarantee calls and therefore holds
the recovery rights. As a result the loans are now recognised on the EU balance sheet.
At 31 December 2024, the Commission holds the recovery rights for EUR 1.0 billion of such loans,
including accrued interests (2023: EUR 0.1 billion). However, after taking into account the
expected credit losses, the amount recognised on the balance sheet is EUR 51 million (2023:
EUR 56 million).
c) Term deposits of EUR 340 million (2023: EUR 122 million) with maturity of over 3 months that do
not meet the definition of cash equivalents.
Annual accounts of the European Union 2024
66
2.4.2. Financial assets at fair value through surplus or deficit (FVSD)
EUR million
Note 31.12.2024 31.12.2023
Financial assets at FVSD non-derivatives 2.4.2.1 43 648 37 402
Financial assets at FVSD derivatives 2.4.2.2 1 110 1 091
Total 44 758 38 493
Non-current 39 058 32 018
Current 5 700 6 476
2.4.2.1. Financial assets at FVSD non-derivatives
Financial assets at FVSD non-derivatives by type
EUR million
31.12.2024 31.12.2023
Debt securities 34 465 29 703
MMFs, ETFs and investments in pooled portfolios 5 975 4 806
Other equity investments 3 201 2 893
Loans 8 –
Total 43 648 37 402
Non-current 37 948 30 967
Current 5 700 6 435
Debt securities are mainly sovereign and corporate bonds. They are held in the funds (portfolios)
managed by the Commission (mainly CPF and the Budget Fines Fund (BUFI)) or by the EIB on behalf of
the EU (mainly Horizon 2020 (H2020) and the Innovation Fund). The portfolios’ performance is evaluated
on a fair value basis (market value). As at 31 December 2024, the market value of securities lent within
the securities lending programmes amounts to EUR 5.8 billion (EUR 3.2 billion in 2023). Those securities
lent are not derecognised from the EU’s balance sheet as the risks and rewards are still held by the EU.
Money market funds (MMFs) are mutual funds that invest in short-term debt securities (e.g. the EIB
unitary fund). The exchange-traded funds (ETFs) are investment funds that are traded on stock
exchanges. They track indices and hold assets such as stocks, bonds, currencies and futures contracts.
The investments in pooled portfolios are the EU funds of Connecting Europe Faclity (CEF) and H2020
programmes pooled together with Member States’ funds from the NER 300 programme. They are used to
provide guarantees to the EIB’s financing and investment operations.
The ‘Other equity investments’ mainly refer to investing EU budget money – via implementing partners –
in venture capital or other types of investment funds for pursuing EU policy objectives: for example,
enhancing access to finance for start up SMEs, research and innovation as well as infrastructure both
inside and outside the EU.
Financial assets at FVSD non-derivatives by programme
EUR million
31.12.2024 31.12.2023
Common Provisioning Fund 23 174 18 698
Innovation Fund 10 616 8 754
BUFI investments 2 141 2 268
ECSC i.L. 1 206 1 219
EBRD 188 188
EEAS local staff pension plan 128 97
Horizon 2020 and Horizon Europe 3 968 3 872
Connecting Europe Facility 716 731
EU SME Equity Facilities 453 485
European Fund for South East Europe 243 233
Green for Growth Fund 128 116
Energy Efficiency Finance Facility 103 110
Other 586 630
Total 43 648 37 402
Non-current 37 948 30 967
Current 5 700 6 435
Annual accounts of the European Union 2024
67
Common Provisioning Fund (CPF)
The EU gives guarantees to financial partners for losses on equity investments and loans (see note 4.1
for EU budgetary guarantees). In accordance to the legal acts, the EU budget gradually sets money aside
in order to pay to the partners any losses covered by these guarantees. The EU budget also sets money
aside to repay the borrowings in case of defaults on MFA and Euratom loans to non-Member States.
In compliance with the Financial Regulation, the Commission has set up the CPF to manage, in one
common portfolio, the money it sets aside (‘provisioning’). The monies are invested in debt securities,
money market funds and ETFs. In addition to the EU budget provisioning, the CPF receives recoveries
from defaulted operations, the returns on its investments and the EU’s remuneration from the financial
partners. The CPF may also receive voluntary contributions from Member States and other contributors
that are – in this way – increasing the available EU budget guarantees.
The CPF allocates the incoming contributions into compartments depending on the contributing
programme. The legal acts of the programmes set out the necessary provisioning for the guarantees
provided. The EU budget pools these individually provisioned funds in the CPF so as to optimise the asset
management.
As at 31 December 2024 the assets of the CPF increased as the InvestEU, NDICI and Ukraine guarantees
are building up the necessary provisions but also due to portfolio gains of EUR 0.9 billion. The total assets
were EUR 23.2 billion, out of which EUR 19.8 billion were invested in debt securities, and EUR 3.3 billion
in ETFs.
Innovation Fund (IF)
The Innovation Fund establishes a system for the trading of greenhouse gas emission allowances within
the Union. The purpose is to use the revenue to support innovation in low-carbon technologies and
processes in certain economic sectors. The Innovation Fund receives the revenue from the progressive
monetisation of 530 million of allowances and also any unspent funds from the 300 million allowances
available for NER300 programme (see note 3.8). The EIB manages the monies, until they are used for
the intended purpose, and invests them in debt securities. The increase in 2024 is mainly due to
incoming auctioning revenues.
BUFI investments
The Commission has established the Budget Fines fund (‘BUFI’) for managing the money it provisionally
receives for fines issued to companies which are under appeal. Until the final court decision on a given
fine, the Commission invests the money in debt instruments.
ECSC i.L.
The ECSC Treaty expired on 23 July 2002 and all the ECSC assets were transferred to the European
Union. They were earmarked for research in the sectors associated with the coal and steel industries, for
example breakthrough technologies that lead to near-zero-carbon steelmaking. The Commission invests
the monies in debt securities, until they are granted for research purposes.
European Bank for Reconstruction and Development
The EU holds a financial investment in the capital of the European Bank for Reconstruction and
Development (EBRD), in which the number of shares held at 31 December 2024 were 90 044 (2023:
90 044 shares), representing 2.9% of the total subscribed share capital. The EU subscribed for a total
amount of EUR 900 million of share capital, out of which EUR 713 million is currently uncalled.
Horizon 2020 and Horizon Europe
Under the EU Regulation establishing Horizon 2020 – the Framework Programme for Research and
Innovation (2014-2020) – new financial instruments have been established in order to enhance access to
finance to entities engaged in research and innovation (R&I). These instruments are:
— The InnovFin Loan and Guarantee Service for R&I under which the Commission shares the
financial risk related to a portfolio of new financing operations entered into by the EIB;
— The InnovFin SME Guarantee and the SME Initiative Uncapped Guarantee Instrument (SIUGI) –
guarantees facilities managed by the EIF, providing guarantees and counter-guarantees to
Annual accounts of the European Union 2024
68
financial intermediaries for new portfolios of loans (under SIUGI the Commission shares the
financial risk related to the guarantee given with Member States, EIF and EIB);
— The InnovFin Equity Facility for R&I providing for investments in venture capital funds which are
managed by the EIF; and
— The EIC Fund (European Innovation Council Fund) which provides equity financing to accelerate
innovation and market deployment actions. The EIC fund is funded from the Horizon Europe and
H2020 programmes.
Connecting Europe Facility
Pursuant to Regulation (EU) No 1316/2013 of the European Parliament and of the Council23
, the
Connecting Europe Facility (CEF) debt instrument has been established with the objective to facilitate
infrastructure projects’ access to financing in the sectors of transport, telecommunications and energy. It
is managed by the EIB under an agreement with the EU. It offers risk sharing for debt financing in the
form of senior and subordinated debt or guarantee as well as support for project bonds guaranteed by
the EU.
EU SME Equity Facilities
These are equity instruments financed by the COSME, CIP and MAP programmes and the Growth and
Employment Initiative, under the trusteeship of the EIF, supporting the creation and financing of EU SMEs
in their early (start-up) and growth stages by investing in suitable specialised venture capital funds.
Fair value hierarchy of non-derivative financial assets at FVSD
EUR million
Type of financial asset 31.12.2024 31.12.2023
Level 1: Quoted prices in active markets 37 559 31 477
Level 2: Observable inputs other than quoted prices 3 098 3 230
Level 3: Valuation techniques with inputs not based on
observable market data
2 991 2 695
Total 43 648 37 402
During the period, there were no transfers between level 1 and level 2 of the fair value hierarchy.
Reconciliation of non-derivative financial assets measured using valuation techniques with inputs not
based on observable market data (level 3)
EUR million
Fair value movements
Opening balance at 1.1.2024 2 695
Investments during the period 508
Capital repayments (85)
Revenues settled (38)
Gains or losses for the period in surplus or deficit (89)
Transfers into level 3 –
Transfers out of level 3 –
Other 0
Closing balance at 31.12.2024 2 991
23
Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the
Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007
and (EC) No 67/2010 Text with EEA relevance (OJ L 348, 20.12.2013, p. 129).
Annual accounts of the European Union 2024
69
2.4.2.2. Financial assets and liabilities at FVSD derivatives
Financial assets and liabilities at FVSD derivatives by type
EUR million
Type of derivative 31.12.2024 31.12.2023
Notional
amount
Fair Value
Asset
Fair Value
Liability
Notional
amount
Fair
Value
Asset
Fair Value
Liability
Guarantee on equity portfolio 6 057 1 110 (60) 5 059 1 050 (53)
FX derivatives 2 417 – (38) 1 528 41 (6)
Total 8 474 1 110 (98) 6 587 1 091 (60)
Non-current 1 110 (13) 1 050 (8)
Current – (84) 41 (52)
Guarantees on equity portfolios
The heading ‘Guarantee on equity portfolio’ comprises guarantees given by the EU to financial institutions
on portfolios of equity investments. These guarantees are classified as derivative financial instruments
and accounted for as a financial asset or financial liability at fair value through surplus or deficit since
they do not meet the definition of a financial guarantee liability – see note 1.5.12. The EU financial asset
or liability is measured based on the value of the underlying investments.
The total amount represents mainly the EFSI guarantee given by the EU to the EIB Group with underlying
equity investments disbursed by the EIB and EIF amounting to EUR 3.8 billion (2023: EUR 3.7 billion).
The fair value of the EU guarantee on the EFSI equity portfolios totalled EUR 1.1 billion (2023:
EUR 1.0 billion).
Foreign exchange derivatives
The EU enters into foreign currency forward contracts in order to hedge the foreign currency risk related
to USD denominated debt securities held in the CPF. Under the foreign currency forward contracts, the
EU delivers the contractually agreed notional amount in foreign currency (‘pay leg’), as presented in the
table above, and will receive the notional amount in EUR (‘receive leg’) at the maturity date.
This heading also includes effect of foreign currency risk hedging activities under InvestEU guarantee and
cases where the EU guarantees foreign currency risk.
Fair value hierarchy of derivative financial assets and liabilities
EUR million
Type of derivative 31.12.2024 31.12.2023
Fair Value
Asset
Fair Value
Liability
Fair Value
Asset
Fair Value
Liability
Level 1: Quoted prices in active markets – – – –
Level 2: Observable inputs other than
quoted prices – (27) 41 (1)
Level 3: Valuation techniques with inputs
not based on observable market data 1 110 (71) 1 050 (59)
Total 1 110 (98) 1 091 (60)
During the period, there were no transfers between level 1 and level 2. Derivatives in fair value level 3
include mainly guarantees on equity portfolios.
Annual accounts of the European Union 2024
70
Reconciliation of derivative financial assets and liabilities measured using valuation techniques with inputs
not based on observable market data (Level 3)
EUR million
Fair value movements
Opening balance asset/(liability) as at 1.1.2024 992
Guarantee call claims paid 170
Guarantee calls returned (10)
Revenues from guarantee settled (129)
Gains or losses for the period in surplus or deficit 16
Transfers into level 3 –
Transfers out of level 3 –
Other 0
Closing balance at 31.12.2024 1 039
2.5. PRE-FINANCING
EUR million
Note 31.12.2024 31.12.2023
Non-current
Pre-financing 2.5.1 39 093 40 970
Other advances to Member States 2.5.2 1 682 371
Contribution to Trust Funds 85 76
40 861 41 417
Current
Pre-financing 2.5.1 35 969 48 478
Other advances to Member States 2.5.2 2 089 1 780
38 058 50 257
Total 78 919 91 675
The level of pre-financing in the various programmes must be sufficient to ensure the necessary funding
for the beneficiary to initiate and advance the project, while also safeguarding the financial interests of
the EU and taking into consideration legal, operational and cost-effectiveness constraints.
Annual accounts of the European Union 2024
71
2.5.1. Pre-financing
EUR million
Gross
amount
Cleared via
accruals
Net amount
at 31.12.2024
Gross
amount
Cleared via
accruals
Net amount
at 31.12.2023
Shared management
EAFRD & other rural
development instruments
3 885 (840) 3 045 3 614 (686) 2 928
ERDF & CF 25 859 (16 476) 9 384 31 502 (10 125) 21 378
ESF 9 437 (6 258) 3 180 12 105 (3 236) 8 869
Other 14 220 (4 836) 9 384 8 755 (5 348) 3 408
53 402 (28 409) 24 992 55 976 (19 394) 36 582
Direct Management
Implemented by:
Commission 34 727 (14 289) 20 438 37 273 (12 782) 24 491
of which RRF (NGEU) 18 930 (3 541) 15 389 22 889 (3 710) 19 178
EU executive agencies 40 693 (25 586) 15 107 36 130 (21 683) 14 446
Trust funds 508 (429) 79 639 (507) 133
75 928 (40 304) 35 624 74 042 (34 972) 39 070
Indirect Management
Implemented by:
Other EU agencies & bodies 5 281 (2 814) 2 467 4 983 (2 314) 2 670
Third countries 1 843 (1 103) 739 1 602 (1 166) 436
International organisations 13 171 (8 839) 4 333 14 229 (9 713) 4 516
Other entities 19 295 (12 389) 6 906 17 606 (11 432) 6 175
39 590 (25 144) 14 446 38 421 (24 625) 13 797
Total 168 920 (93 858) 75 062 168 439 (78 991) 89 448
Non-current 39 093 – 39 093 40 970 – 40 970
Current 129 826 (93 858) 35 969 127 469 (78 991) 48 478
Pre-financing represents money paid out, and thus the implementation of payment appropriations. As
explained in note 1.5.7, these are advances and so not yet expensed. Thus while pre-financing reduces
outstanding RAL (see note 5.1) it represents expenses still to be accepted and recognised in the
statement of financial performance.
For shared management, the significant decrease in the cohesion area pre-financing is linked to
programming period 2014-2020 – as the period is reaching its closure phase, higher amounts are
cleared, which accounts for a decrease of EUR 18 billion.
As regards the 2021-2027 programming period, the most significant pre-financing amounts are also
related to the cohesion area, EUR 9.3 billion (2023: EUR 9 billion).
The increase in other shared management is linked to the disbursement of EUR 6 billion in pre-financing
under the Just Transition Fund to European regions.
For direct management, the biggest amounts of pre-financing are those related to the non-reimbursable
support concerning the RRF instrument, EUR 15.4 billion net at year-end (2023: EUR 19.2 billion). The
decrease is mostly linked to the clearings that took place during the year (EUR 7.2 billion) following
Member States reaching milestones and targets. In 2023, the RRF was amended by Regulation (EU)
2023/435 of the European Parliament and of the Council24
to provide additional support to Member States
through REPowerEU chapters for reforms and investments fostering independence, security and
sustainability of the Union’s energy supply. New pre-financing amounts (EUR 2.4 billion) were paid to the
Member States in 2024 in relation to REPowerEU chapters. The other significant amounts, in total EUR
11.9 billion (2023: EUR 12.1 billion), refer to the Research area (mainly Horizon 2020 and Horizon
Europe, implemented by the EU executive agencies and the Commission).
24
Regulation (EU) 2023/435 of the European Parliament and of the Council of 27 February 2023 amending Regulation
(EU) 2021/241 as regards REPowerEU chapters in recovery and resilience plans and amending Regulations (EU) No
1303/2013, (EU) 2021/1060 and (EU) 2021/1755, and Directive 2003/87/EC (OJ L 63, 28.2.2023, p. 1).
Annual accounts of the European Union 2024
72
For indirect management, the pre-financing covers mainly internal policies programmes like Erasmus+
(EUR 4.3 billion), Galileo and EGNOS (Space Programmes, EUR 2.7 billion), and the Neighbourhood,
Development and Cooperation Instrument and its precursors (EUR 2.5 billion).
Guarantees received in respect of pre-financing
These are guarantees that the Commission requests in certain cases from beneficiaries that are not
Member States when making advance payments (pre-financing). There are two values to disclose for this
type of guarantee, the ‘nominal’ and the ‘on-going’ values. For the nominal value, the generating event is
linked to the existence of the guarantee. For the on-going value, the guarantee’s generating event is the
pre-financing payment made against the guarantee, then reduced by subsequent clearings. At 31
December 2024 the nominal value of guarantees received in respect of pre-financing amounted to
EUR 942 million while the on-going value of those guarantees was EUR 587 million (2023: EUR 576
million and EUR 525 million respectively).
Certain pre-financing amounts paid out under the 7th
Research Framework Programme for research and
technological development (FP7) and under the Horizon 2020 and Horizon Europe Programmes are
effectively covered by the Mutual Insurance Mechanism (MIM), previously known as the Participants
Guarantee Fund (PGF). The MIM is a mutual benefit instrument set up to cover the risks relating to non-
payment of amounts by the beneficiaries during the implementation of the indirect actions under those
programmes. All participants of indirect actions receiving a grant from the EU contribute 5% of the
maximum EU contribution to the MIM's capital, which is invested in the financial markets by the
Commission in order to generate interest. The interest may be used to cover debts not honoured by a
defaulting participant towards the Union. At the end of the indirect action the contributions are paid back
to the participants. The EU (represented by the Commission) acts as an executive agent of the
participants of the MIM, but the fund is owned by the participants. The MIM is thus a separate entity that
is not consolidated in these EU annual accounts.
At 31 December 2024, pre-financing amounts covered by the MIM totalled EUR 3.0 billion (2023:
EUR 3.0 billion). The MIM’s total assets, including financial assets managed by the Commission,
amounted to EUR 3.2 billion (2023: EUR 3.0 billion).
2.5.2. Other advances to Member States
EUR million
31.12.2024 31.12.2023
Advances to Member States for financial instruments under
shared management
1 889 594
Aid Schemes 1 883 1 556
Total 3 772 2 150
Non-current 1 682 371
Current 2 089 1 780
Advances to Member States for financial instruments under shared management
Under the framework of the European Structural and Investment Funds (ESIF) programmes, it is possible
to make advance payments from the EU budget to Member States so as to allow them to contribute to
financial instruments (i.e. loans, equity investments or guarantees). These financial instruments are set
up and managed under the responsibility of the Member States, not the Commission. Nevertheless,
monies that are unused by these instruments at year-end remain the property of the EU (as with all pre-
financing) and are thus treated as an asset on the EU’s balance sheet.
For cohesion area, as the former programming period is reaching its closure stage, all amounts for MFF
2014-2020 are considered as implemented. Therefore, the large increase concerns MFF 2021-2027 where
out of EUR 1 832 million paid, it is estimated that EUR 1 803 million was unused at 31 December 2024.
For rural development, EUR 85 million remained unused at year-end.
Aid Schemes
Similar to the above, reimbursed amounts corresponding to advances paid by the Member States for
various aid schemes (state aid, market measures of EAGF or investment measures of EAFRD) that were
not used at year-end are recorded as assets (advances) on the EU's balance sheet. The Commission has
Annual accounts of the European Union 2024
73
estimated the value of these advances based on information provided by the Member States; the
resulting amounts are included under the Aid Schemes sub-heading above. In 2024, an amount of EUR
1 685 million relates to agriculture and rural development. For cohesion policy the unused amounts at
year-end were estimated at EUR 198 million and relate to the MFF 2021-2027.
2.6. EXCHANGE RECEIVABLES AND NON-EXCHANGE
RECOVERABLES
EUR million
Note 31.12.2024 31.12.2023
Non-current
Recoverables from non-exchange transactions 2.6.1 11 541 13 954
Receivables from exchange transactions 2.6.2 1 731 2 129
13 272 16 083
Current
Recoverables from non-exchange transactions 2.6.1 16 529 16 795
Receivables from exchange transactions 2.6.2 1 936 2 321
18 465 19 116
Total 31 736 35 199
2.6.1. Recoverables from non-exchange transactions
EUR million
Note 31.12.2024 31.12.2023
Non-current
Member States 2.6.1.1 275 272
UK Withdrawal Agreement 2.6.1.2 11 231 13 088
Accrued income and deferred charges 2.6.1.4 10 567
Other recoverables 25 27
11 541 13 954
Current
Member States 2.6.1.1 4 667 3 706
UK Withdrawal Agreement 2.6.1.2 1 530 2 385
Fines imposed on companies 2.6.1.3 9 152 9 861
Accrued income and deferred charges 2.6.1.4 1 085 787
Other recoverables 94 57
16 529 16 795
Total 28 070 30 749
Annual accounts of the European Union 2024
74
2.6.1.1. Recoverables from Member States
EUR million
31.12.2024 31.12.2023
TOR A accounts 3 277 2 326
TOR separate accounts 849 1 249
Own resources to be received 139 7
Impairment (553) (673)
Other – –
Own resources recoverables 3 712 2 908
European Agricultural Guarantee Fund (EAGF) 1 534 1 483
European Agricultural Fund for Rural Development (EAFRD) and
other rural development instruments
127 126
Impairment (741) (683)
EAGF and rural development recoverables 920 927
Pre-financing recovery 16 1
VAT paid and recoverable 53 49
Other recoverables from Member States 242 93
Total 4 943 3 977
Non-current 275 272
Current 4 667 3 706
The non-current amounts due from Member States relate mainly to non-executed conformity clearance
decisions for the European Agricultural Guarantee Fund (EAGF) as well as for the European Agricultural
Fund for Rural Development (EAFRD). The amounts related to these decisions are being recovered in
annual instalments.
Own resources recoverables
The 'A accounts' refer to the monthly statements in which the Member States communicate the
established traditional own resources (TOR) entitlements. The table lists the ‘A accounts’ amounts that
have not yet been paid to the Commission. TOR are mainly customs duties collected by Member States
on behalf of the Commission.
The 'A accounts' have tended to have a level in the range of EUR 3 to 4 billion at year-end. In 2024, the
amounts declared by the Member States are back to the usual level, after the decrease recorded in the
previous year (mainly due to the closing of a case regarding anti-dumping duties on solar panels).
Additionally, the customs duties established in November and December 2024 were higher compared to
the same period of the previous year.
Concerning the United Kingdom infringement case (Infringement No 2018/2008), on 8 March 2022, the
Court issued the related judgement and confirmed that the UK had infringed its obligations to protect the
Union budget. The case originated in a 2017 OLAF report, that found that importers in the UK had evaded
a large amount of customs duties by using fictitious and false invoices and incorrect customs value
declarations at the time of importation.
The Commission assessed the judgment, and particularly the comments of the Court with respect to the
determination of the amounts due. Following a detailed analysis, the UK paid both principal and late
interest amounts between 2022 and 2023 (EUR 1.6 billion for the principal and EUR 1.4 billion for late
interest before the reduction of the UK share).
Applying the same parameters for the calculation of the estimated TOR losses due for textiles and
footwear imported from China at significantly understated value, Member States paid under reservation
an amount of EUR 1.9 billion during 2021 and 2022. Following the closure of the undervaluation file
regarding the UK, the Commission has been recalculating in cooperation with Member States their
respective final amounts due in accordance with the Court ruling case C-213/19. In 2024, the final
amounts of principal and interest due have been agreed with several Member States and the respective
cases have been closed. Clarifications with some Member States are ongoing to establish the final
amounts due. By 31 December 2024, EUR 0.9 billion paid under reservation remain subject to further
analysis and further reductions are expected in view of additional information to be provided by the
Member States concerned.
Annual accounts of the European Union 2024
75
The late payment interest due in relation to these cases is currently estimated to be EUR 0.3 billion at 31
December 2024 (see note 2.6.2).
‘Separate accounts’ refers to established entitlements that have not been included in the 'A accounts',
because they have not been recovered by Member States and no security (i.e. guarantee) has been
provided (or security has been provided but the amounts are contested). These entitlements are subject
to impairment based on information provided every year by the Member States. The impairment amounts
represent generally a similar percentage of the principal amount at each year-end.
EAGF and Rural Development recoverables
This item primarily covers the amounts owed by Member States at 31 December 2024, as declared and
certified by the Member States as at 15 October 2024. An estimation is made for the recoverables arising
after this declaration and up to 31 December 2024. The Commission also estimates a write-down for the
amounts owed by beneficiaries that are unlikely to be recovered. The fact that such an adjustment is
made does not mean that the Commission is waiving future recovery of these amounts. A deduction of
20% is also included in the adjustment and corresponds to what Member States are allowed to retain to
cover administrative costs.
2.6.1.2. UK Withdrawal Agreement
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’ (ref. 2019/C 384 I/01) (the ‘Withdrawal
Agreement’ or ‘WA’) signed between the EU and the UK lays down various financial obligations for both
parties. As at 31 December 2024, the net receivable from the UK based on these obligations amounted to
EUR 12 762 million (2023: EUR 15 473 million), of which EUR 1 530 million is to be received within the
12 months following the reporting date (2023: EUR 2 385 million):
EUR million
Article 140 Article 142 Other 31.12.2024 31.12.2023
Due from the UK 4 432 10 136 116 14 683 18 867
Due to the UK - – (1 922) (1 922) (3 394)
Total 4 432 10 136 (1 806) 12 762 15 473
Non-current 2 469 9 802 (1 040) 11 231 13 088
Current 1 963 334 (766) 1 530 2 385
UK share (Article 139)
According to Article 139, the UK's share of the financial obligations arising out of the WA is a percentage
calculated as the ratio between the own resources made available by the UK in the years 2014 to 2020
and the own resources made available during that period by all Member States and the UK as adjusted by
the amount communicated to the Member States before 1 February 2022. The final UK share has been
calculated as being 12.431681219587700%.
Payments under the Withdrawal Agreement
The payment mechanism to be applied to the obligations provided for between the two parties is laid out
in Article 148. In summary, the EU invoices the net amounts due from the UK in April and September of
each year and the UK pays these on a monthly basis. The amounts reported in April of a given year are
to be paid in four equal monthly instalments from June to September of that year. The amounts reported
in September are to be paid in eight equal monthly instalments from October of that year to May of the
following year. Since some amounts reported are necessarily based on forecasts and estimates, the
reporting is updated each year based on actual figures.
In 2024 the net amount reported to the UK under Article 136, and Articles 140 to 147, was EUR 377
million (2023: EUR 8 585 million), of which EUR 1 414 million, payable to the UK, was reported in April
2024 and EUR 1 791 million, payable by the UK, was reported in September 2024 (2023: EUR 3 572
million and EUR 5 013 million, respectively, payable by the UK).
The total payments received in 2024 amounted to EUR 2 391 million (2023: EUR 9 450 million). Of this
amount, EUR 3 133 million related to the remainder of the September 2023 report and was paid by the
UK in five equal instalments in the period from January to May 2024 (2023: EUR 3 998 million), EUR
1 414 million, related to the 2024 April report and was paid to the UK in four equal monthly instalments
Annual accounts of the European Union 2024
76
in the period from June to September 2024 (2023: EUR 3 572 million, paid by the UK), and EUR 672
million related to the 2024 September report and was paid by the UK in three equal instalments in the
period October to December 2024 (2023: EUR 1 880 million).
EUR million
Remainder of
September 2023
report:
(due and paid from
January to May
2024)
April 2024
report:
(due and paid
from June to
September 2024)
September 2024
report:
(due and paid
from October to
December 2024)
Total
payments
in 2024
Article 136 21 – 8 29
Article 140 3 092 – 672 3 763
Article 142 18 280 11 309
Article 143 11 – – 11
Article 147 – 12 – 12
3 141 292 690 4 123
Article 136 – (1 349) – (1 349)
Article 140 – (10) – (10)
Article 141 (8) – (19) (27)
Article 143 – (244) – (244)
Article 144 (0) (59) – (59)
Article 145 – (37) – (37)
Article 146 – (7) – (7)
(8) (1 706) (19) (1 732)
Total 3 133 (1 414) 672 2 391
Furthermore, in July 2024 the UK paid a net amount of EUR 4.7 million (after offsetting the UK’s share of
EUR 0.7 million) relating to a VAT-related infringement case (Mini One-Stop Shop – MOSS).
The remaining balance of the September 2024 invoice at the end of the year, amounting to EUR 1 120
million, is payable by the UK in five equal monthly instalments in the period January to May 2025 (2023:
EUR 3 133 million).
Article 140 – Outstanding commitments
The UK has committed to pay to the EU its share of the outstanding budgetary commitments at 31
December 2020 (the ‘Brexit RAL’), as adjusted by the requirements of Article 140. At 31 December 2024,
the total amount recognised as a receivable amounted to EUR 4 432 million (2023: EUR 8 340 million), of
which EUR 1 963 million is payable within the 12 months following the year-end. The following table
presents the main movements between the total amount recognised as a receivable at 31 December
2023 and the total amount recognised as a receivable at 31 December 2024:
EUR million
Amount owed by the UK at 31.12.2023 8 340
Net financial corrections related to 2014-2020 or previous programme periods
(including adjustment of 2023 deductions)
(35)
Net payments received from the UK in 2024 (3 753)
Adjustment of estimated non-implementation (121)
Total 4 432
Non-current 2 469
Current 1 963
The year-on-year decrease of the total amount recognised as a receivable amounted to EUR 3 909 million
(2023: EUR 8 688 million) and was mainly due to the payments received from the UK in 2024.
Annual accounts of the European Union 2024
77
The amount to be paid within 12 months from the reporting date (EUR 1 963 million) comprises the
remaining balance of the September 2024 invoice (EUR 1 119 million) payable by the UK in the period
from January to May 2025, the amount invoiced in April 2025 (EUR 599 million) payable by the UK in the
period from June to September 2025, and the part of the amount to be invoiced in September 2025
payable by the UK in the period from October to December 2025 (EUR 244 million). The amount invoiced
in April 2025 is composed of EUR 342 million relating to the UK’s share of the estimated RAL
implementation in 2025 and EUR 257 million relating to the adjustment of the UK’s share of the RAL due
to implementation in 2024. The amount to be invoiced in September 2025 and payable in the period
October to December 2025 is made up of EUR 257 million relating to the UK’s share of the estimated RAL
implementation in 2025 and a negative amount of EUR 13 million relating to the UK’s share of the
estimated net financial corrections related to 2014-2020 or previous programme periods (including the
adjustment of the 2023 deductions).
The estimated non-implementation has been adjusted by EUR 121 million to reflect the actual
decommitments in 2024 as well as the future decommitments of the remaining stock of Brexit-RAL as
estimated at year-end 2024.
Article 142 – Union liabilities at end 2020
The UK has committed to pay the EU its share of Union liabilities at end 2020 with the exception of
liabilities: (a) with corresponding assets and (b) relating to the operation of the budget and the
management of own resources (including amounts already covered by the outstanding commitments, see
Article 140 above). The main amount here concerns the EU post-employment benefit liabilities (pensions
and sickness insurance) existing at 31 December 2020.
Outstanding 2020 liabilities under Article 142 (6)
EUR million
Pension Scheme
of European
Officials
Joint Sickness
Insurance
Scheme
31.12.2024 31.12.2023
Outstanding 2020 liabilities 72 580 4 948 77 529 79 709
UK Share 9 023 615 9 638 9 909
PSEO/JSIS contributions 294 11 305 280
Total 9 317 626 9 943 10 189
Non-current 9 023 615 9 638 9 909
Current 294 11 305 280
According to the default payment mode laid out in Article 142 (6), the UK contributes annually to the net
payments made from the Union budget in the preceding year to each beneficiary of the Pension Scheme
of European Officials (PSEO) and to the related contribution of the Union budget to the Joint Sickness
Insurance Scheme (JSIS) for each beneficiary or person who benefits through a beneficiary. The
contributions are payable in four monthly instalments from June to September of the respective year.
The UK’s share of the net payments made from the Union budget in 2024 to the beneficiaries of the PSEO
and to JSIS amounted to EUR 294 million and EUR 11 million, respectively. These amounts were
communicated to the UK as part of the April 2025 invoice (and thus are payable by the UK in four equal
monthly instalments in the period from June to September 2025).
In addition, at 31 December 2024 the outstanding 2020 UK liabilities under Article 142 (6), relating to
the PSEO and the JSIS amounted to EUR 9 023 million and EUR 615 million, respectively (2023: EUR
9 207 million and EUR 703 million). It is noted that while actuarial losses (or gains) from changes in
actuarial assumptions impact the present value of the outstanding 2020 liabilities calculated on the basis
of IPSAS 39/EAR 12, they do not change either the amount of benefits that will have to be actually paid
by the EU, or, by implication, the UK contributions to these payments as due under the default
settlement mechanism set out in Article 142 (6).
Outstanding 2020 liabilities under Article 142 (5)
According to Article 142 (5), the UK contributes to the liabilities relating to the other retirement (pension)
schemes as they were recorded in the consolidated EU accounts for the 2020 financial year in 10
instalments starting on 31 October 2021 (with each annual instalment payable in eight monthly
instalments from October to May the following year). These liabilities in the consolidated annual accounts
of the Union for the 2020 financial year amounted to EUR 2 344 billion, resulting in a UK share at
31 December 2020 of EUR 291 million. Taking into account the amounts received from the UK up until
Annual accounts of the European Union 2024
78
the end of 2024, totalling EUR 98 million, the outstanding UK’s share of the other retirement (pension)
schemes had decreased to EUR 193 million at 31 December 2024, of which EUR 29 million is to be paid
within the 12 months following the year-end.
For more information regarding the employee benefit schemes, please see note 1.5.10 and note 2.9.
Other articles
EUR million
31.12.2024 31.12.2023
Due from the UK:
Article 136 8 –
Article 147 107 115
116 115
Due to the UK:
Article 136 – (1 451)
Article 141 (1 630) (1 564)
Article 143 (191) (233)
Article 144 (58) (59)
Article 145 (37) (74)
Article 146 (7) (13)
(1 922) (3 394)
Total (1 806) (3 279)
Non-current (1 040) (1 602)
Current (766) (1 677)
Article 136 – Provisions applicable in relation to own resources
Article 136 lays down the provisions applicable after 31 December 2020 in relation to own resources. The
UK is entitled to receive its share or obliged to pay its share, as the case may be, where own resources
relating to the financial years up to and including 2020 are to be made available, corrected or subject to
adjustments after 31 December 2020. Thus, the UK is subject to any adjustments to VAT and GNI own
resources that relate to the financial years up to and including 2020. However, these VAT and GNI
adjustments will only be made if decided upon no later than 31 December 2028. Updates to the UK
corrections for 2018-2019 are also to be taken into account.
In accordance with Article 136 of the Withdrawal Agreement, the UK authorities continue to send monthly
A account statements providing a summary of the amounts of traditional own resources due to the EU
budget. These amounts (minus applicable retention rate) are included in the total amounts of the
subsequent invoice referred to in Article 148 (2) of the Withdrawal Agreement (see next paragraph). If
those amounts are paid late, interest is due under Article 12 of Regulation (EU, Euratom) No 609/2014.
The UK is therefore required to pay the traditional own resources collected by them after
28 February 2021, but relating to the years 2020 and earlier. Their share of the total made available is to
be deducted from this amount. The separate account for traditional own resources must be fully
liquidated at 31 December 2025.
The net outstanding amount due from the UK at 31 December 2024 is EUR 8 million (2023: EUR 1 451
million, due to the UK), of which EUR 112 million will have to be paid to the UK within the 12 months
following the year-end and EUR 121 million will have to be paid by the UK afterwards.
Annual accounts of the European Union 2024
79
EUR million
Amount due to (-)/from (+) the UK at 31.12.2023 (1 451)
Adjustment of estimate for amounts invoiced in September 2024 16
UK share for VAT-related infringement case (MOSS) 1
Payments made to the UK in 2024 1 319
VAT and GNI adjustments (balances exercise 2023) (2)
VAT and GNI adjustments (balances exercise 2024) 121
Interest on late payment of UK traditional own resources and VAT own
resources 4
UK net traditional own resources after 28 February 2021 (0)
Amount due to (-)/from (+) the UK at 31.12.2024 8
Non-current 121
Current (112)
The amount presented under ‘Payments made to the UK in 2024’ is net of the UK’s share of the amount
for the VAT-related infringement case (Mini one-stop shop – MOSS).
The amount presented under 'VAT and GNI adjustments (balances exercise 2023)' corresponds to the
difference between the April 2025 invoice (EUR -129.4 million) and the estimate already included in the
Brexit receivable at year-end 2023 (EUR -127.7 million).
The amount presented under 'VAT and GNI adjustments (balances exercise 2024)' corresponds to the
estimated amount to be invoiced in April 2026.
Article 141 – Fines
The UK is entitled to its share of fines decided on before 31 December 2020 and also those decided on by
the Union after 31 December 2020 in a procedure referred to in Article 92 (1) when these become
definitive. The amount of UK relevant fines which were outstanding at 31 December 2024 is EUR 8.9
billion (2023: EUR 12.4 billion). The net decrease in these fines was EUR 3.4 billion (EUR 1.2 billion in
fines issued in 2024 less EUR 4.6 billion in fines confirmed and paid, reduced or cancelled by court
decisions). The UK’s share of the UK-relevant fines outstanding at 31 December 2024 is EUR 1.1 billion
(2023: EUR 1.5 billion), out of which an amount of EUR 7 million will be included in the September 2025
invoice and paid to the UK in the period October 2025 to May 2026. In addition, the UK is entitled to its
share of definitive fines which were no longer outstanding at 31 December 2024 (EUR 343 million, which
was included in the April 2025 invoice and is to be paid to the UK in the period from June 2025 to
September 2025, as well as EUR 146 million, to be included in the September 2025 invoice and paid to
the UK in the period from October 2025 to May 2026) and its share of definitive fines that were invoiced
in September 2024 but not yet paid at year-end (EUR 31 million, paid to the UK in the period from
January to May 2025). The UK’s total share of fines thus amounts to EUR 1.6 billion (2023: EUR 1.6
billion), of which EUR 431 million is to be paid within the 12 months following the reporting date (2023:
EUR 27 million).
Articles 143 – Contingent financial liabilities: loans for financial assistance, EFSI, EFSD & ELM
Under this article, the UK is liable for its share of the EU’s contingent liabilities relating to its borrowing,
lending and guarantee activities, if these crystallise and if they are not covered by existing guarantee
funds – see note 4.1 for the related contingent liabilities. The EU will refund to the UK amounts which the
UK has already contributed to guarantee funds and which are no longer needed. The UK also has a right
to the reflows from operations for which it shares the liability. At 31 December 2024, the amount to be
paid to the UK, all within the next 12 months, was EUR 190.6 million (2023: EUR 243.8 million). This
amount comprises the UK’s share of the recoveries and net revenues collected in 2024
(EUR 104.4 million), the excess in provisioning (EUR 59.7 million) and the revenue from asset
management (EUR 30.1 million). It also includes EUR -3.6 million of adjustments identified during the
agreed-upon review procedures: adjustment for amounts recovered in 2023 for ELM (EUR 1 302),
adjustment to the 2023 current provisioning rate for ELM (EUR -0.5 million), adjustment for amounts
recovered in 2023 for EFSI (EUR -3.2 million), adjustment to the 2023 current provisioning rate for EFSI
(EUR 0.1 million) and adjustment to the 2023 amount for revenue of the asset management of the
provisioning for EFSI (EUR -9 448).
Annual accounts of the European Union 2024
80
Articles 144 – Financial instruments
Under this article, the EU has committed to refund to the UK its share of the reflows stemming from
financial operations approved by the withdrawal date, as well as its share of the disbursements made to
financial operations approved after the withdrawal date. At 31 December 2024, the amount to be paid to
the UK, all within the next 12 months, was EUR 57.9 million (2023: EUR 59.4 million).
Article 145 – European Coal and Steel Community in Liquidation (ECSC i.L.)
The UK is entitled to its share of the net assets of ECSC i.L. at 31 December 2020, to be paid back in five
instalments on 30 June each year, starting in 2021. The net assets of the ECSC i.L. at 31 December 2020
amounted to EUR 1.5 billion, of which the UK’s share is EUR 184 million. Following the payment of the
fourth instalment of EUR 37 million in 2024, the outstanding amount at 31 December 2024 was EUR 37
million (2023: EUR 74 million), all of which is to be paid within 12 months following the reporting date.
Article 146 – Investment in the European Investment Fund (EIF)
The UK is entitled to its share of the EU’s investment in the paid-in share capital of the EIF at 31
December 2020, to be paid back in five instalments on 30 June each year, starting in 2021. The EU’s
investment in the EIF paid-in share capital at 31 December 2020 was EUR 267 million of which the UK’s
share is EUR 33 million. Following the payment of the fourth instalment of EUR 6.6 million in 2024, the
outstanding amount at 31 December 2024 was EUR 6.6 million (2023: EUR 13.3 million), all of which is
to be paid within 12 months following of the reporting date.
Article 147 – Legal cases
The UK has committed to contribute its share of EU payments arising from legal cases concerning the
financial interests of the Union which become due, provided the facts that constitute the subject matter
of those cases occurred no later than 31 December 2020. Taking into account the provisions and accruals
at year-end, as well as actual payments made and received by the EU for legal cases in 2024, the UK will
have to pay an estimated EUR 107 million (2023: EUR 115 million), of which EUR 69 million is to be paid
within 12 months of the reporting date.
2.6.1.3. Recoverables from fines imposed on companies
EUR million
31.12.2024 31.12.2023
Recoverable from fines gross amount 12 247 13 762
Provisional and definitive payments (2 161) (3 014)
Impairment (934) (887)
Total 9 152 9 861
Non-current – –
Current 9 152 9 861
Fines imposed on companies include mainly competition fines and CO2 excess emission premiums. Fined
companies who have launched or are planning to launch an appeal have an option to either make
provisional payments or to provide bank guarantees to the Commission. For the total outstanding fines at
year-end that are not covered by provisional or definitive payments, EUR 7 091 million (2023: EUR 9 324
million) of guarantees have been received as coverage.
Payments received from fined companies are held either as investments (see note 2.4.2.1) or on bank
accounts under BUFI (see note 2.8).
The amounts written down due to impairment reflect the Commission's case-by-case assessment of those
fines not cashed or not covered by a guarantee, which the Commission expects not to recover, as well as
cases reduced by the Courts.
Revenue from fines imposed on companies for the year totalled EUR 3 512 million (see note 3.5) while
expenses, i.e. reductions of fines by Court decisions, totalled EUR 1 123 million (see note 3.16).
Annual accounts of the European Union 2024
81
A contingent liability of EUR 2 178 million is disclosed for the possibility of having to pay back
provisionally paid amounts to fined companies who are appealing or have the right to appeal the fines
imposed on them – see note 4.2.1.
2.6.1.4. Accrued income and deferred charges
EUR million
31.12.2024 31.12.2023
Accrued income 756 1 131
Deferred charges relating to non-exchange transactions 339 223
Total 1 095 1 354
Non-current 10 567
Current 1 085 787
Accrued income includes EUR 0.4 billion (2023: EUR 1 billion) that the Commission expects to recover in
the area of cohesion as a result of the examination and acceptance of the annual accounts submitted by
the Member States.
2.6.2. Receivables from exchange transactions
EUR million
31.12.2024 31.12.2023
Non-current
Financial guarantee receivable 1 324 1 666
Late payment interest 323 365
Other receivables 84 98
1 731 2 129
Current
Financial guarantee receivable 306 340
Customers 302 286
Impairment on receivables from customers (136) (158)
Deferred charges relating to exchange transactions 363 380
Late payment interest 761 1 186
Other 339 287
1 936 2 321
Total 3 666 4 450
The late payment interest concerns mainly own resources cases and accrued interest on fines covered by
guarantees provided by fined companies. The non-current amount (EUR 0.3 billion) relates to the cases
still ongoing with the Member States mentioned under note 2.6.1.1.
The financial guarantee contract (FGC) receivable represents the future remuneration the EU expects to
receive for guarantees given. The majority of the EU guarantees are non-remunerated or priced below
the market rate. Therefore, the FGC receivable is significantly smaller than the FGC liability (see note
2.11.2). Out of the total amount of EUR 1 629 million of the FGC receivable as at 31 December 2024,
EUR 1 588 million is classified as financial assets at FVSD (fair value level 3). Compared to the opening
balance as at 1 January 2023 of EUR 2 006 million, in total the FGC receivable has decreased by
EUR 377 million due to EUR 274 million guarantee premiums received in 2024 and EUR 103 million lower
guarantee premiums expected to be received in the future.
Annual accounts of the European Union 2024
82
2.7. INVENTORIES
EUR million
31.12.2024 31.12.2023
Scientific materials 66 60
Other 19 20
Total 85 78
2.8. CASH AND CASH EQUIVALENTS
EUR million
Note 31.12.2024 31.12.2023
Accounts with Treasuries and Central Banks 24 059 22 620
Current accounts 808 312
Imprest accounts 10 7
Transfers (cash in transit) – 0
Bank accounts for budget implementation 2.8.1 24 877 22 940
Unified funding approach 2.8.2 33 926 12 539
Financial instruments 2.8.3 2 758 2 279
Fines 2.8.4 134 540
Other institutions, agencies and bodies 1 439 1 281
Trust funds 30 37
Total 63 163 39 616
2.8.1. Bank accounts for budget implementation
This heading covers the funds which the Commission keeps in its bank accounts in each Member State
and EFTA country (treasury or central bank), as well as in commercial bank current accounts, imprest
accounts and petty cash accounts.
The cash balances adhere to certain cyclical patterns where expenditures follow the collection of
resources. Consequently, they fluctuate based on these opposing flows. Notably, the cash balance at
year-end is – to a big extent – absorbed at the beginning of the following year by a major payment of the
EAGF-related expenditure.
The small difference in cash balance available at end 2024 compared to 2023 was mainly due to a
somewhat slower pace in certain expenditures than forecasted.
2.8.2. Unified funding approach
Under the unified funding strategy, part of the borrowings stay in cash held on a bank account at the
ECB. The purpose is to keep liquidity for upcoming disbursement obligations and to maintain a defined
liquidity buffer, while avoiding excessive balances (see also notes 6.4 and 6.6). The cash levels in this
account fluctuate over the course of the year. The increased cash balances at the end of 2024 are due to
disbursements planned for the beginning of 2025.
2.8.3. Financial instruments
Amounts shown under this heading primarily concern cash equivalents managed by fiduciaries on behalf
of the Commission for the purpose of implementing financial instrument programmes funded by the EU
budget: EUR 1.8 billion as at 31 December 2024, of which EUR 0.5 billion relates to EIC Fund – see note
2.4.2.1. It also includes EUR 0.8 billion cash equivalents (term deposits and short term commercial
papers) belonging to the Innovation Fund managed by the EIB – see note 2.4.2.1. This heading does not
cover the CPF related liquidity buffer (EUR 0.1 billion as at 31 December 2024), which is held in the
Annual accounts of the European Union 2024
83
Commission’s central treasury. Cash belonging to financial instruments can only be used by the
programmes concerned.
2.8.4. Fines
This is cash received in connection with fines issued by the Commission to companies for which the case
is still open. Where an appeal has been lodged or when it is unknown if an appeal will be made by the
fined company, the underlying amount is shown as contingent liability in note 4.2.1. Since 2010, all
provisionally cashed fines to companies have been managed by the Commission in the BUFI fund and
invested in financial instruments categorised as financial assets at FVSD non-derivatives (see note
2.4.2), with some of the fund assets being cashed at year-end.
Annual accounts of the European Union 2024
84
LIABILITIES
2.9. PENSION AND OTHER EMPLOYEE BENEFITS
2.9.1. Net employee benefit scheme liability
EUR million
Pension
Scheme of
European
Officials
Other
retirement
benefit
schemes
Joint Sickness
Insurance
Scheme
31.12.2024
Total
31.12.2023
Total
Defined Benefit Obligation 84 765 1 942 6 850 93 557 91 261
Plan assets N/A (23) (438) (461) (453)
Net liability 84 765 1 919 6 413 93 096 90 808
The total employee benefits liability has remained relatively stable, the small increase being primarily
driven by an increase in the net liability of the Pension Scheme of European Officials (PSEO), the largest
scheme in place. The actuarial gains resulting from the increase in the PSEO real discount rate in the year
were largely netted off by losses due to actuarial assumptions related to salary changes, thus resulting in
net actuarial losses from financial assumptions (see notes 2.9.2 and 2.9.4). It must be noted, however,
that while an increase or a decrease in the real discount rate impacts the size of the liability at year-end,
it does not change the amount of benefits that will have to be actually paid from the EU budget to the
beneficiaries in future years. Additionally, the decrease in the net liability due to actuarial gains from
experience was netted off by an increase due to the annual current service cost and interest cost
(unwinding of the liability discounting) (see note 2.9.2).
Pension Scheme of European Officials
This defined benefit obligation represents the present value of expected future payments that the EU is
required to make, so as to settle the pension obligations resulting from employee service in the current
and prior periods. The scheme is ongoing, and as such, all payments required to be made from the
scheme on an annual basis are included in the EU budget each year.
In accordance with Article 83 of the Staff Regulations, the payment of the benefits provided for in the
staff pension scheme constitutes a charge to the EU budget. The scheme is notionally funded, and the
Member States guarantee the payment of these benefits collectively. A compulsory pension contribution
is deducted from the basic salaries of active members, currently 12.1%. These contributions are treated
as budget revenue of the year and contribute to the funding of EU expenditure in general, see also note
3.8.
The liabilities of the pension scheme were assessed on the basis of the number of PSEO staff (active
staff, retirees, former active staff now on invalidity and dependants of deceased staff) at 31 December
2024 and on the rules of the Staff Regulations applicable at this date. This valuation was carried out in
accordance with the accounting provisions of IPSAS 39 (and therefore also EU accounting rule 12).
Other retirement benefit schemes
This refers to the liability relating to the pension obligations towards Members and former Members of the
Commission, the European Court of Justice and the Court of Auditors, the Council, the European
Ombudsman and the European Data Protection Supervisor. Also included under this heading are liabilities
relating to the pensions of Members of the European Parliament.
Joint Sickness Insurance Scheme
In addition to the above retirement benefit schemes, a valuation is made for the estimated liability that
the EU has regarding the Joint Sickness Insurance Scheme (JSIS) in relation to healthcare costs, which
must be paid during post-activity periods (net of their contributions). As stated in note 1.5.10, the
calculation of this liability takes account of the full active service period, ensuring that both the pension
and the sickness insurance schemes of the staff’s post-employment plan are accounted for consistently.
Annual accounts of the European Union 2024
85
Taking into account the obligation to faithfully present the economic substance of the underlying situation
as required by both EAR and IPSAS, IPSAS 39 has not been interpreted in a stricter sense when
attributing the benefits to the periods of service. If the service cost were to be accrued for the JSIS
scheme fully over 10 years for all officials, as opposed to the period of active service of the employee, the
impact of such an approach on the defined benefit obligation at year-end would be an increase of EUR 1.2
billion. However, as already indicated, this stricter approach would not be compatible with the qualitative
characteristic of faithful representation, and thus would not be deemed to provide reliable information in
accordance with EAR 1 and the IPSAS Conceptual Framework. This estimate is highly sensitive to the
evolution of current staff administrative status (in particular, the number of fixed-term contract members
assumed to become officials in the future).
2.9.2. Movement in present value of employee benefits defined benefit obligation
The present value of the defined benefit obligation is the discounted expected future payments required
to settle the obligation resulting from employee service in the current and prior periods.
An analysis of the current year movement in the defined benefit obligation is presented below:
EUR million
Pension Scheme
of European
Officials
Other
retirement
benefit schemes
Joint Sickness
Insurance
Scheme
Total
Present value as at 31.12.2023 82 718 1 808 6 735 91 261
Recognised in statement of
financial performance
Current Service Cost 2 839 76 241 3 156
Interest cost 2 480 53 209 2 742
Past Service Cost – (3) – (3)
Recognised in net assets
Remeasurements in employee benefits
liabilities
Actuarial (gains)/losses from
experience
(1 542) 138 (119) (1 523)
Actuarial (gains)/losses from
demographic assumptions
308 3 18 329
Actuarial (gains)/losses from
financial assumptions
339 (52) (102) 185
Other
Benefits paid (2 378) (82) (131) (2 591)
Present value as at 31.12.2024 84 765 1 942 6 850 93 557
Current service cost is the increase in the present value of the defined benefit obligation arising from
current members' service in the current year.
Interest cost refers to the increase during the period in the present value of the defined benefit obligation
because the benefits are one period closer to settlement.
Actuarial gains and losses from experience refer to the effects of differences between what was expected
according to the assumptions made in the previous year for 2024 and what really occurred in 2024. This
item also reflects the impact of newcomers (staff members present in the current exercise but not in the
previous one).
Actuarial gains and losses from changes in the values of the actuarial assumptions (demographic
variables such as employee turnover and mortality and financial variables such as discount rates and
expected salary increases) arise when the estimated values of those assumptions are updated in order to
reflect the underlying conditions.
Benefits (for example, pensions or medical cost reimbursements) are paid during the year according to
the rules of the scheme. These benefits paid lead to a decrease in the defined benefit obligation.
Annual accounts of the European Union 2024
86
2.9.3. Plan assets
EUR million
Other retirement
benefit schemes
Joint Sickness
Insurance Scheme
Total
Present value as at 31.12.2023 34 419 453
Net movement in plan assets (11) 19 8
Present value as at 31.12.2024 23 438 461
2.9.4. Actuarial assumptions – employee benefits
The principal actuarial assumptions used in the valuation of the two main employee benefit schemes of
the EU are shown below:
2024 2023
Pension Scheme of European Officials
Nominal discount rate 3.3% 3.0%
Expected inflation rate 2.0% 2.2%
Real discount rate 1.3% 0.8%
Expected rate of future salary increases 1.3% 1.1%
Retirement age 63/64/66 63/64/66
Joint Sickness Insurance Scheme
Nominal discount rate 3.3% 3.1%
Expected inflation rate 2.0% 2.2%
Real discount rate 1.3% 0.8%
Expected rate of future salary increases 1.3% 1.1%
Medical cost trend rates 1.6% 1.7%
Retirement age 63/64/66 63/64/66
Mortality rates for 2024 are based on the updated EU Civil Servants Life Table – EULT 2023, incorporating
a dynamic trend over the next 18 years.
The nominal discount rate is determined as the value of the Euro zero-coupon yield (with a maturity of 18
years as of December 2024 for the PSEO, and 19 years for the Joint Sickness Insurance Scheme). The
inflation rate used is the expected inflation rate over the equivalent period: the break-even inflation is
retrieved by comparing the yields of inflation-linked and regular government bonds of the main European
financial markets. The real discount rate is calculated from the nominal discount rate and the expected
long-term inflation rate.
2.9.5. Sensitivity analysis
The sensitivity analysis is based on simulations, which change, everything else being equal, the value of
the concerned assumptions.
Pension Scheme of European Officials sensitivity
A ten basis point (0.1%) change in the assumed real discount rate would have the following effects:
EUR million
2024 2023
Increase 0.1% Decrease 0.1% Increase 0.1% Decrease 0.1%
Defined benefit obligation (1 516) 1 558 (1 541) 1 585
Annual accounts of the European Union 2024
87
A ten basis point (0.1%) change in expected salary increases would have the following effects:
EUR million
2024 2023
Increase 0.1% Decrease 0.1% Increase 0.1% Decrease 0.1%
Defined benefit obligation 1 514 (1 476) 1 532 (1 493)
A one-year change in assumed retirement age would have the following effects:
EUR million
2024 2023
One year increase One year decrease One year increase One year decrease
Defined benefit obligation (799) 1 109 (795) 1 076
Joint Sickness Insurance Scheme sensitivity
A ten basis point change in assumed medical cost trend rates would have the following effects:
EUR million
2024 2023
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
11 (11) 12 (12)
Defined benefit obligation 166 (162) 166 (162)
A ten basis point (0.1%) change in the assumed nominal discount rate would have the following effects:
EUR million
2024 2023
Increase 0.1% Decrease 0.1% Increase 0.1% Decrease 0.1%
Defined benefit obligation (130) 133 (132) 135
A ten basis point (0.1%) change in expected salary increases would have the following effects:
EUR million
2024 2023
Increase 0.1% Decrease 0.1% Increase 0.1% Decrease 0.1%
Defined benefit obligation (27) 26 (25) 25
A one-year change in assumed retirement age would have the following effects:
EUR million
2024 2023
One year increase One year decrease One year increase One year decrease
Defined benefit obligation (185) 197 (188) 199
Annual accounts of the European Union 2024
88
2.10. PROVISIONS
EUR million
Amount at
31.12.2023
Additional
provisions
Unused
amounts
reversed
Amounts
used
Transfer
between
categories
Change in
estimation
Amount at
31.12.2024
Legal cases:
Agriculture 1 204 – (1) – – 204
Other 823 11 (197) (536) – 0 100
Nuclear site
dismantlement
1 768 – – (46) – 75 1 796
Financial 1 7 082 (1) – – 0 7 082
Other 742 137 (228) (16) – (2) 633
Total 3 334 7 434 (426) (599) – 73 9 816
Non-current 2 102 204 (12) (23) (63) 73 2 280
Current 1 233 7 230 (414) (576) 63 (0) 7 536
Provisions are reliably estimated amounts, arising from past events, that will probably have to be paid by
the EU budget in the future.
Financial provisions
The additions are provisions for ECL on MFA loan commitments under ULCM (see note 2.4.1.1).
At 31 December 2024, the EU had irrevocably committed to disburse EUR 18.1 billion to Ukraine. This
loan will be disbursed in 2025. According to the accounting standards, the EU has to recognise the ECL as
a provision at the moment of irrevocable commitment.
Legal cases
This is the estimate of amounts that will probably have to be paid out after the year-end in relation to a
number of on-going legal cases. The Agriculture amounts relate to legal actions of Member States against
conformity clearance decisions for the EAGF and the EAFRD.
Nuclear site dismantlement
As of 2017 the basis for the provision was updated as per the ‘JRC Decommissioning & Waste
Management Programme Strategy (D&WMP) – Updated in 2017’. The review of the strategy, along with
budget and staff needs, was conducted together with the independent D&WMP Expert Group. It
represents the best available estimate of the budget and staff needed to complete the decommissioning
of the JRC sites of Ispra, Geel, Karlsruhe and Petten.
In accordance with the EU accounting rules, this provision is indexed for inflation and then discounted to
its net present value (using the euro swap curve). At 31 December 2024, this resulted in a provision of
EUR 1 796 million, split between amounts expected to be used in 2025 (EUR 38 million) and afterwards
(EUR 1 758 million).
It must be noted that major uncertainties, inherent to the long term planning of nuclear
decommissioning, could affect this estimate, which could significantly increase in the future. The main
sources of uncertainty are related to the end state of the decommissioned site, nuclear materials, waste
management and disposal aspects, incomplete or lacking definition of national regulatory frames,
complicated and time-consuming licensing processes and future developments of the decommissioning
industrial market.
Annual accounts of the European Union 2024
89
2.11. FINANCIAL LIABILITIES
EUR million
Note 31.12.2024 31.12.2023
Non-current
Financial liabilities at amortised cost 2.11.1 539 522 430 633
Financial liabilities at fair value through surplus or deficit 2.4.2.2 13 8
Financial guarantee liabilities 2.11.2 39 131
539 575 430 771
Current
Financial liabilities at amortised cost 2.11.1 55 904 21 424
Financial liabilities at fair value through surplus or deficit 2.4.2.2 84 52
Financial guarantee liabilities 2.11.2 6 340 6 137
62 328 27 613
Total 601 903 458 385
2.11.1. Financial liabilities at amortised cost
EUR million
Note 31.12.2024 31.12.2023
Borrowings 2.11.1.1 594 028 450 561
Other financial liabilities 2.11.1.2 1 398 1 496
Total 595 426 452 057
Non-Current 539 522 430 633
Current 55 904 21 424
2.11.1.1. Borrowings
EUR million
Unified
Funding
Approach
SURE EFSM BOP MFA Euratom Total
Total at 31.12.2023 292 728 98 984 43 095 201 15 238 314 450 561
New borrowings - nominal 194 472 – 1 800 – 145 – 196 417
Repayments (50 404) – (2 600) – (600) (13) (53 617)
Changes in carrying
amount
832 (145) 2 0 (21) (0) 667
Total at 31.12.2024 437 628 98 839 42 297 201 14 762 301 594 028
Non-current 393 285 90 539 39 517 – 14 624 300 538 266
Current 44 342 8 300 2 780 201 138 0 55 762
The nominal amount of borrowings at 31 December 2024 is EUR 601.3 billion (2023: EUR 458.5 billion).
The majority of the borrowings are long-term bond issuances, except for unified funding where also
short-term EU-Bills of EUR 23.1 billion (2023: EUR 15.2 billion) have been issued. The net new borrowing
in 2024 was EUR 142.8 billion (nominal).
The amounts borrowed for SURE, EFSM, BOP, Euratom and MFA loans signed before 2023 are ‘back-to-
back’ transactions which means that the EU issues a dedicated bond to fund a specific loan agreement, at
the same terms and conditions – see note 2.4.1.1.
The ‘unified funding’ finances the NGEU loans and non-repayable support as well as the Ukraine Facility
and MFA loans signed as of 2023. The Commission uses a pooled funding approach where the borrowings
are not directly funding specific disbursements. Instead, the debt is issued according to an annual
borrowing plan, with long term bonds and short term bills. The Commission uses auctions and
Annual accounts of the European Union 2024
90
syndications to issue these securities. It then passes on the costs, in line with the cost allocation
methodology agreed with Member States, to the Member States for the loans and to the EU budget for
the non-repayable support. This funding flexibility also requires a liquidity buffer for an efficient liquidity
management, see note 2.8.2. In the context of the unified funding strategy, the Union issues short-term
EU-Bills (3 to 12 months), which may be repaid during the same or following year. The line ‘Repayments’
refers to EUR 50.2 billion of such short-term borrowings.
Another EUR 0.2 billion in the line ‘Repayments’ and in the line ‘New borrowings’ refers to repurchase
agreement operations (repo) that the EU offers as of 2024 to its primary dealers to improve the efficiency
and fluidity of the market for EU-Bonds.
The line ‘Changes in carrying amount’ corresponds to the change in accrued interest and to the changes
in premiums/discounts (new premiums/discounts and amortisation).
The repayment of the above borrowings is ultimately guaranteed by the EU budget – see note 2.4.1.1.
2.11.1.2. Other financial liabilities
EUR million
31.12.2024 31.12.2023
Non-current
Finance lease liabilities 605 750
Buildings paid for in instalments 283 288
Contributions with conditions 234 177
Other 134 129
1 256 1 343
Current
Finance lease liabilities 79 91
Buildings paid for in instalments 55 55
Contributions with conditions 8 7
Other – –
142 153
Total 1 398 1 496
Finance lease liabilities
EUR million
Future amounts to be paid
< 1 year 1-5 years > 5 years Total Liability
Land and buildings 77 279 321 677
Other fixed assets 2 5 – 7
Total at 31.12.2024 79 283 321 683
Interest element 24 77 72 173
Total future minimum lease payments at
31.12.2024
102 361 393 856
Total future minimum lease payments at
31.12.2023
121 448 453 1 022
The lease and building related amounts above will have to be funded by future budgets.
Contributions with conditions relate to contributions from Member States and other donors to the EU
programmes, in particular to InvestEU (see note 4.1.1), whereby the EU has an obligation to return any
unused funds to the contributor.
Annual accounts of the European Union 2024
91
2.11.2. Financial guarantee liabilities
EUR million
31.12.2024 31.12.2023
Financial
guarantee
receivable
(Note 2.6.2)
Financial
guarantee
liability
Financial
guarantee
receivable
(Note 2.6.2)
Financial
guarantee
liability
EU budgetary guarantee
programmes
EIB ELM guarantees 19 1 862 51 2 170
EFSI guarantee 1 345 1 402 1 789 1 863
EFSD guarantee 7 192 4 196
InvestEU guarantee 190 1 606 117 920
NDICI EU guarantee 30 582 10 367
Ukraine guarantee 10 61 – –
1 600 5 707 1 970 5 515
EU financial instrument
programmes
COSME – 304 0 338
Horizon 2020 6 198 9 266
Other 23 171 27 149
29 673 36 753
Total 1 629 6 379 2 006 6 268
Non-current 1 324 39 1 666 131
Current 306 6 340 340 6 137
The EU applies the gross presentation of the financial guarantee contracts, where the revenues still to be
received under the guarantee are recognised as a financial guarantee receivable leg (presented under the
exchange receivables heading – see note 2.6.2) and a financial guarantee liability is recognised
representing the EU liabililty for coverage of the future guarantee claims.
While, the ELM and EFSI financial guarantee liabilities remain significant, the guarantees under new
programmes in this MFF, namely InvestEU, NDICI, and Ukraine guarantee started in 2024, continue to
increase due to signatures of new operations by the EU implementing partners (see also note 4.1.1).
Except for the EFSI guarantee, where the EU is entitled to an expected remuneration – recognised as a
financial guarantee receivable – covering to a large extent the liability, for the remaining programmes the
expected revenues are covering only a small fraction of the guarantee. This is due to a high share of EU
subsidisation for those programmes, in particular those provided for higher-risk financing to SMEs or to
the innovation sector, as well as guarantees for projects in developing countries.
Annual accounts of the European Union 2024
92
2.12. PAYABLES
EUR million
Gross
Amount
Adjustments
Net Amount
at 31.12.2024
Gross
Amount
Adjustments
Net Amount
at 31.12.2023
Cost claims and invoices
received from:
Member States
EAFRD & other rural
development instruments
269 (0) 269 300 (0) 300
ERDF & CF 6 036 (2 258) 3 778 7 251 (1 995) 5 256
ESF 2 156 (447) 1 708 2 062 (310) 1 752
RRF (NGEU) 28 016 (724) 27 292 22 427 22 427
Other 1 824 (318) 1 506 1 124 (225) 899
Private and public entities 1 957 (334) 1 623 1 859 (407) 1 452
Total cost claims and
invoices received
40 258 (4 082) 36 176 35 023 (2 937) 32 085
EAGF 15 086 N/A 15 086 12 503 N/A 12 503
Own resources payables - N/A - 3 248 N/A 3 248
Sundry payables 3 624 N/A 3 624 2 277 N/A 2 277
Other 528 N/A 528 402 N/A 402
Total 59 496 (4 082) 55 414 53 453 (2 937) 50 516
Payables include invoices and cost claims received but not yet paid at year-end. They are initially
recognised at the time of the reception of the invoices or cost claims for the requested amounts. The
payables are subsequently adjusted to reflect only the amounts accepted following review of costs, and
the amounts estimated to be eligible. The amounts estimated to be non-eligible are included in the
column ‘Adjustments’; the largest amounts concern the structural actions.
The increase in RRF payables by EUR 4.9 billion indicates that there were more payment requests
received towards the end of the year for which the assessment of milestones and targets was still
pending.
The increase in EAGF payables relates to the repartition of the total EAGF liabilities between payables and
accrued charges. The total EAGF liabilities remain relatively stable at EUR 40 672 million against EUR
40 843 million in the previous year. In 2024, the claimed amounts, accounted for as payables, are higher
than in 2023, while the accruals have decreased by a similar amount.
The CPR (Common Provisions Regulations (EU) 1303/201325
and (EU) 2021/106026
of the European
Parliament and of the Council) applicable to the Structural Funds (ERDF and ESF), the Cohesion Fund and
to the European Maritime and Fisheries Fund (EMFF) foresees that the EU budget is protected by means
of a systematic retention on the interim payments made. By February following the end of the CPR
accounting year (1 July – 30 June), the control cycle is complete, both through management verifications
by the managing authorities and audits by the audit authorities. The Commission examines the assurance
documents and the accounts provided by the relevant authorities in the Member States. The payment /
recovery of the final balance is made only after this assessment is finalised and the accounts are
accepted. The amount retained according to this provision at end 2024 totalled EUR 9.3 billion. A part of
this amount (EUR 1.1 billion) is estimated as being non-eligible on the basis of the information provided
by the Member States in their accounts and is also included in the column ‘Adjustments’.
25
Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down
common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the
European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down
general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and
the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347,
20.12.2013, p. 320).
26
Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common
provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just
Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the
Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for
Border Management and Visa Policy (OJ L 231, 30.6.2021, p. 159).
Annual accounts of the European Union 2024
93
Requests for pre-financing
In addition to the above amounts, at the end of 2024, EUR 2.1 billion of requests for pre-financing have
been received and were not yet paid at year-end. According to the EU accounting rules, these amounts
are not booked as payables.
Own Resources Payables
Own resources payables refer to Member States EU budget contributions to be reimbursed at year-end.
Amending budgets are implemented according to Article 10a (3) of Regulation (EU, Euratom) No
609/2014. The large balance at 31 December 2023 was due to the adoption of the amending budget No
4/2023 on 22 November 2023. According to this legal provision, the resulting amounts were returned to
the Member States on the first working day of January 2024. This year there was no similar amending
budget, thus no such payables.
2.13. ACCRUED CHARGES AND DEFERRED INCOME
EUR million
31.12.2024 31.12.2023
Accrued charges 66 792 76 237
Deferred income 159 182
Other 140 386
Total 67 091 76 805
The split of accrued charges is as follows:
EUR million
31.12.2024 31.12.2023
RRF (NGEU) 4 371 3 709
EAGF 25 586 28 339
EAFRD and other rural development instruments 17 374 17 895
ERDF and CF 3 101 11 052
ESF 2 318 3 882
Other 14 042 11 360
Total 66 792 76 237
Accrued charges refer to recognised expenses for which the Union has still to receive cost claims. The
biggest movement concerns cohesion policy, a decrease of EUR 8 billion for ERDF & CF and EUR 1.6
billion for ESF. This is due to the decreasing accruals of the former programming period 2014-2020 as
the programmes have entered the closure phase. For the decrease in EAGF accrued charges see note
2.12.
Annual accounts of the European Union 2024
94
NET ASSETS
2.14. RESERVES
EUR million
31.12.2024 31.12.2023
Other reserves 986 1 052
Total 986 1 052
The amount relates primarily to the reserves of the ECSC i.L. (EUR 593 million) for the assets of the
Research Fund for Coal and Steel, which were created in the context of the winding-up of the ECSC i.L.,
as well as to the reserve fund of the European Union Intellectual Property Office, ensuring the continuity
of its operations (EUR 293 million).
2.15. AMOUNTS TO BE CALLED FROM MEMBER STATES
EUR million
Amounts to be called from Member States at 31.12.2023 213 221
2023 budget result credited to Member States 633
Remeasurements in employee benefits liabilities (1 159)
Other (94)
Economic result of the year 97 208
Total amounts to be called from Member States at 31.12.2024 309 810
This amount represents that part of the expenses incurred by the EU up to 31 December that must be
funded by future budgets. Many expenses are recognised under accrual accounting rules in the year N
although they may be actually paid in year N+1 (or later) and therefore funded using the budget of year
N+1 (or later). The inclusion in the accounts of these liabilities coupled with the fact that the
corresponding amounts are financed from future budgets, results in liabilities greatly exceeding assets at
the year-end. The most significant amounts to be highlighted concern the borrowings in relation to non-
repayable support taken out under NGEU, EAGF activities and employee benefit liabilities.
It should also be noted that the above has no effect on the budget result – budget revenue should always
equal or exceed budget expenditure and any excess of revenue is returned to Member States.
The remeasurements in employee benefits liabilities relate to actuarial gains and losses arising from the
actuarial valuation of these liabilities.
The considerable increase of the amounts to be called from Member States in the past years is primarily
due to the borrowings in relation to non-repayable support taken out under NGEU in this period.
Annual accounts of the European Union 2024
95
3. NOTES TO THE STATEMENT OF FINANCIAL
PERFORMANCE
REVENUE
REVENUE FROM NON-EXCHANGE TRANSACTIONS:
OWN RESOURCES
3.1. GNI RESOURCES
Own resources revenue is the primary element of the EU's operational revenue. GNI (gross national
income) revenue is the most significant of the four categories of own resources. A uniform percentage is
levied on the GNI of each Member State. The GNI revenue balances revenue and expenditure, i.e. it
funds the part of the budget that is not covered by other sources of income. The decrease of GNI revenue
in 2024 compared to 2023 is explained to a great extent by a reduction of the payment appropriations
needs.
3.2. TRADITIONAL OWN RESOURCES
Traditional own resources relate mainly to customs duties where Member States retain, by way of
collection costs, 25% of the amounts, so the above figures are net of this deduction. The level of import
duties reflects essentially the combination of fluctuations in the value of imports from outside the EU and
changes in the common tariff, which has been lowered on many occasions following the negotiations
within the World Trade Organisation (WTO), and specific agreements granting tariff preferences to certain
trading partners or to certain products. The level thus depends also on the general economic situation,
the level of world prices and the impact of exchange rates.
3.3. VAT RESOURCES
The VAT own resource is calculated based on Member States’ VAT bases, which are harmonised for this
purpose in accordance with EU rules. A uniform call rate of 0.30 % applies to each Member State’s total
amount of VAT receipts collected for all taxable supplies divided by the weighted average VAT rate. The
VAT base is capped at 50 % of each Member State’s GNI.
3.4. PLASTICS OWN RESOURCES
A uniform call rate of EUR 0.80 per kilogram applies to the weight of plastic packaging waste generated
in each Member State that is not recycled. The plastic packaging waste that is not recycled in a given
year is calculated as the difference between the plastic packaging waste generated and the plastic
packaging waste recycled in that year in a Member State. Bulgaria, Czechia, Estonia, Greece, Spain,
Croatia, Italy, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Portugal, Romania, Slovenia and
Slovakia are entitled to specific annual lump sum reductions in their respective plastics own resource
contributions. This relatively new own resource was introduced in 2021 with the entry into force of the
new Own Resources Decision (Council Decision (EU, Euratom) 2020/2053)27
.
27
Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European
Union and repealing Decision 2014/335/EU, Euratom (OJ L 424, 15.12.2020, p. 1).
Annual accounts of the European Union 2024
96
REVENUE FROM NON-EXCHANGE TRANSACTIONS:
TRANSFERS
3.5. FINES
Revenue of EUR 4 039 million (2023: EUR 1 748 million) relates mainly to fines the Commission has
imposed on companies for breaching EU competition rules (EUR 3 509 million) and fines imposed on
Member States for infringing EU law (EUR 527 million).
3.6. RECOVERY OF EXPENSES
EUR million
2024 2023
Shared management 755 691
Direct management 157 102
Indirect management 44 10
Total 957 803
This heading mainly represents the recovery orders issued by the Commission that are cashed or offset
against (i.e. deducted from) subsequent payments recorded in the Commission's accounting system. The
recovery orders are issued so as to recover expenditure previously paid out from the EU budget.
Recoveries are based on controls, audits or eligibility analysis and therefore, these operations protect the
EU budget from expenditure incurred in breach of law.
Recovery orders issued by Member States to beneficiaries of EAGF expenditure, as well as the variation of
accrued income estimations from the previous year-end to the current year-end, are also included.
The amounts included in the above table represent revenue earned through the issuance of recovery
orders. For this reason, these figures cannot and do not show the full extent of the measures taken to
protect the EU budget, particularly for cohesion policy where specific mechanisms are in place to ensure
the correction of ineligible expenditure, most of which do not involve the issuance of a recovery order.
The EU budget is also protected by withdrawals of expenditure and recoveries of pre-financing. Shared
management recoveries make up the bulk of the total:
Agriculture: EAGF and rural development
In the framework of the EAGF and the EAFRD, amounts accounted for as revenue of the year under this
heading are financial corrections of the year and reimbursements declared by Member States and
recovered during the year, as well as the net increase in the outstanding amounts declared by Member
States to be recovered at year-end concerning fraud and irregularities.
Cohesion policy
The main amounts related to cohesion policy are amounts that the Commission expects to recover from
the Member States. The recovery will be made following the examination and acceptance of the annual
accounts submitted by the Member States in early 2025. The amounts to be recovered represent
essentially the difference between amounts initially declared as eligible during the accounting year and
the amounts confirmed as eligible in the annual accounts of the Member States. A low amount means
that the controls in place at Member State level enabled the detection of ineligible amounts early in the
process.
3.7. UK WITHDRAWAL AGREEMENT
This revenue relates to the net amounts owed by the UK under the Withdrawal Agreement signed
following its departure from the Union in 2020 (see note 2.6.1.2), adjusted each year in accordance with
the requirements of the Agreement. In 2024, there was no revenue resulting fom the UK Withdrawal
Agreement; instead an expense was recognised.
Annual accounts of the European Union 2024
97
3.8. OTHER REVENUE FROM NON-EXCHANGE
TRANSACTIONS
EUR million
2024 2023
Contributions from Member States:
Innovation Fund 2 297 1 812
External aid 671 165
Invest EU 207 179
Staff taxes and contributions 1 754 1 565
Contribution from other entities to the EC 6 393 3 456
Contribution from EFTA, third countries and accession countries 4 527 1 770
Transfer of assets 307 280
Budgetary adjustments (6 169) (1 058)
Adjustment of provisions 426 407
Other 261 224
Total 10 673 8 800
Contributions from Member States to the Innovation Fund are revenues relating mainly to the sale of
emission allowances that are to be used to support innovation in low-carbon technologies. The increase
compared to 2023 is linked to the higher volume of ETS allowances sold that were allocated to the
Innovation Fund. Contributions from Member States for external aid include primarily the interest rate
contributions for the MFA+ loans to Ukraine (EUR 0.6 billion).
Staff taxes and contributions revenue relate primarily to the deductions from staff salaries. Retirement
contributions and income tax represent the substantial amounts within this category.
Contributions from other entities to the EC include primarily reflows (EUR 0.3 billion) transferred by EIB
under the ACP (African, Caribbean and Pacific) and the OCT (Overseas Countries and territories)
Investment Facilities and auctioning revenue (EUR 5.9 billion) generated under the ETS allowances, a
funding source also used to provide additional support to Member States through REPowerEU chapters.
Contributions from EFTA countries amount to EUR 1.1 billion and contributions from third countries and
accession countries mainly include financial contributions to Horizon Europe (EUR 2.8 billion).
The budgetary adjustment is mainly linked to the adjustments in the VAT and GNI-based own resources
from previous financial years. With this operation, the Commission redistributes the total VAT and GNI
balances, positive or negative, to the Member States in accordance with their GNI key. The decrease is
linked to lower budget surplus from the previous year and higher amounts to be re-distributed for GNI,
VAT and Plastics own resources.
Other revenue from non-exchange transactions includes the ITER Host State and Membership
contributions to Fusion for Energy, the European Joint Undertaking for ITER and the Development of
Fusion Energy (EUR 68.2 million).
Annual accounts of the European Union 2024
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REVENUE FROM EXCHANGE TRANSACTIONS
3.9. FINANCIAL REVENUE
EUR million
2024 2023
Interest on:
Late payments 224 (121)
Loans 4 129 2 305
Cash & cash equivalents 1 726 1 778
Borrowings 228 229
Other 38 9
Revenue from FGCs 971 887
Gains on financial assets or liabilities at FVSD:
Non-derivatives 1 490 1 695
Derivatives 165 149
Dividends 31 46
Other 4 6
Total 9 005 6 983
Interest revenue on late payments stems mainly from fines and own resources contributions due and not
paid on time.
The interests on loans have increased mainly because of RRF/REPowerEU, MFA and Ukraine Facility. For
RRF/REPower the interests were EUR 2 billion in 2024 compared to EUR 0.7 billion in the previous year.
There were new disbursements in 2024 and the disbursements of the second half of 2023 earned a full
year’s interest in 2024. For MFA the interests were EUR 0.8 billion compared to EUR 0.5 billion in 2023.
The increase mainly comes from MFA+ disbursements of 2023, which earned a full year’s interest in
2024. For Ukraine Facility the interests were EUR 0.2 billion, this is a new facility with disbursements
during the second semester of 2024.
Interest revenue from cash and cash equivalents is mainly EUR 1.2 billion of interest on the bank account
held at the ECB for the management of the liquidity pool related to the unified funding approach (see
note 2.8.2).
Interest revenue from borrowings mainly refers to SURE and results from the negative effective interest
rates for certain past issuances.
Revenue from financial guarantee contracts relates primarily to the amortisation of the financial
guarantee liabilities. It can be interpreted as a release of the EU from guarantee liabilities for the period
the EU was standing ready to compensate the holders of the guarantees for their credit losses. Thus, the
revenue recognition for financial guarantees reflects the passage of time and the guaranteed volume. The
amortisations apply to both types of guarantees, those which are remunerated and those for which the
EU charges no or nominal remuneration (see note 2.11.2). Out of the remunerated guarantees, the most
significant is the EFSI guarantee provided to the EIB for the Infrastructure and Innovation Window (‘IIW’)
debt portfolio and combined with InvestEU debt portfolios (see note 4.1.1). In 2024, the revenue earned
by the EFSI guarantee in relation to those combined debt portfolios amounted to EUR 242 million.
The revenue related to financial guarantee contracts of EUR 971 million is offset by impairment losses for
financial guarantee liabilities amounting to EUR 474 million relating to: guarantee calls net of recoveries
of EUR 462 million and unrealised impairment losses of EUR 12 million (see notes 3.15 and 6.6). In
addition, the EU has subsidised financial guarantee programmes (EUR 1 156 million) by charging no or
below market rate guarantee premiums (see note 3.15). In total, the net result from financial guarantee
programmes is a deficit of EUR 658 million.
The gain from non-derivative financial assets at FVSD mainly refers to the CPF (EUR 0.9 billion) and the
Innovation Fund (EUR 0.3 billion). The interest rate cuts have impacted positively the fair value of the
securities.
Annual accounts of the European Union 2024
99
3.10. OTHER REVENUE FROM EXCHANGE TRANSACTIONS
EUR million
2024 2023
Fee revenue for rendering of services (agencies) 855 739
Foreign exchange gains 325 393
Sales of goods 58 75
Share of net result of EIF 83 67
Fixed assets related revenue 907 9
Other 364 679
Total 2 592 1 963
Fee revenue for rendering of services mainly includes marketing authorisation fees charged by the
European Medicines Agency and trademark fees collected by the European Union Intellectual Property
Office. The increase in fixed assets related revenue is mainly due to the sale of 23 Commission buildings
in Brussels – see note 2.2.
EXPENSES
3.11. SHARED MANAGEMENT
EUR million
Implemented by Member States 2024 2023
European Agricultural Guarantee Fund 40 267 40 716
European Agricultural Fund for Rural Development and other rural
development instruments
14 779 14 605
European Regional Development Fund and Cohesion Fund 28 833 52 429
European Social Fund 18 037 17 665
Other 3 854 4 251
Total 105 770 129 667
The transition from the former programming period 2014-2020 to the current programming period 2021-
2027 explains the reduction of expenses of EUR 23.6 billion for ERDF & CF: the costs declared for the
period 2014-2020 decreased substantially (EUR 30.4 billion) as the implementation has finished and the
programmes have entered the closure phase. At the same time the costs declared for the period 2021-
2027 increased but only by EUR 6.9 billion as the programmes are now advancing.
Other expenses mainly relate to the European Maritime and Fisheries Fund (EUR 0.8 billion), Asylum and
Migration (EUR 1.2 billion), the Fund for European Aid to the Most Deprived (EUR 0.4 billion), as well as
the European Union Solidarity Fund (EUR 0.4 billion).
3.12. DIRECT MANAGEMENT
EUR million
2024 2023
Implemented by the Commission 79 652 45 664
of which RRF (NGEU) 65 787 36 045
Implemented by EU Executive Agencies 19 126 15 897
Implemented by Trust funds 194 326
Total 98 971 61 888
The increase in direct management expenses implemented by the Commission relates mainly to the
implementation of RRF, Research Policy and External Action. The main expenditure concerns RRF (EUR
65.8 billion), which has increased from the previous year as Member States use the funds provided and
Annual accounts of the European Union 2024
100
milestones and targets are achieved. The rest of the amounts under direct management primarily
concern the implementation of Research Policy (EUR 10.6 billion) and External Actions, which include the
Neighbourhood Development and International Cooperation Instrument and its precursors (EUR 3.7
billion), as well as the Ukraine Facility non repayable support (EUR 3.4 billion). A further EUR 4.8 billion
relates to the Connecting Europe Facility, the common infrastructure fund to deploy smart networks in
the area of transport, energy and telecommunications.
3.13. INDIRECT MANAGEMENT
EUR million
2024 2023
Implemented by other EU agencies & bodies 4 388 4 226
Implemented by third countries 549 479
Implemented by international organisations 6 090 5 610
Implemented by other entities 5 599 4 902
Total 16 626 15 218
Under indirect management expenses, EUR 8.3 billion relates to external actions (mainly in the areas of
pre-accession, humanitarian aid, international co-operation and neighbourhood). A further EUR 4 billion is
related to increasing Europe's competitiveness (in areas such as research, space programmes and
education).
3.14. STAFF AND PENSION COSTS
EUR million
2024 2023
Staff costs 9 070 8 481
Pension costs 5 896 5 543
Total 14 966 14 023
Pension costs represent elements of the movements that have arisen following the actuarial valuation of
the employee benefits liabilities other than those recognised in net assets. They do not therefore
represent actual pension payments of the year, which are significantly lower at EUR 2.6 billion.
Annual accounts of the European Union 2024
101
3.15. FINANCE COSTS
EUR million
2024 2023
Interest expenses:
Borrowings 9 780 5 762
Loans 159 160
Finance leases 31 45
Other 32 21
FGCs – subsidised remuneration 1 156 762
Net impairment losses on:
FGCs 474 263
Loans, loan commitments and receivables 14 134 6 812
Loss on financial assets or liabilities at FVSD:
Non-derivatives 153 137
Derivatives 252 104
Modification loss 763 100
Funding costs guaranteed 151 94
Other 140 95
Total 27 226 14 355
The EUR 4 billion increase in the borrowing expenses stems from the unified funding activities, for which
the interests were EUR 8.4 billion compared to EUR 4.4 billion in the previous year. The reasons for this
are new borrowings in 2024 and due to the fact that the issuances of the second semester 2023, beared
a full year’s interest in 2024.
The interest expense on loans is the result of certain SURE transactions, where funds borrowed at times
of negative interest rates, were lent ‘back-to-back’ to the Member States, with the same terms and
conditions.
For more details on expenses related to financial guarantees (FGC), see note 3.9.
The net impairment losses on loans, loan commitments and receivables mainly relate to the ECL on the
new Ukraine Facility loans and to loan commitments on the MFA loan signed under ULCM in 2024. See
notes 2.4.1.1, 2.11 and 6.6.
The modification loss relates to the interest rate subsidy granted to Ukraine for the MFA+ loans
(EUR 0.6 billion) and for the exceptional MFA loans of 2022 (EUR 0.2 billion), see note 2.4.1.1.
The funding costs guaranteed are costs born by financial partners to fund equity investments guaranteed
by the EU. Based on the guarantee agreements, the EU guarantees these costs, together with the
associated equity investments.
For the significant decrease in the losses from non-derivative financial assets at FVSD, see note 3.9.
Annual accounts of the European Union 2024
102
3.16. OTHER EXPENSES
EUR million
2024 2023
Administrative and IT expenses 2 865 2 687
Adjustment of provisions 415 1 065
Fixed assets related expenses 1 929 1 443
Land and buildings management expenses 733 729
Foreign exchange losses 282 314
Operating lease expenses 560 448
Reduction of fines by Court decision 1 123 597
Other 1 093 857
Total 8 999 8 142
The increase in line ‘Reduction of fines by Court decision’ relates mainly to two fines. In 2024, the
Commission withdrew the fining decision imposed on Illumina/Grail in a merger proceeding, resulting in a
write-off of the EUR 432 million fine. The amount also includes EUR 684 million related to a fine imposed
in 2009 on Intel which was partially written-off in the 2024 annual accounts as a result of a Court of
Justice decision issued in October 2024.
The aggregate amount of research and development expenditure recognised as an expense during 2024
is as follows:
EUR million
2024 2023
Research costs 479 452
Non-capitalised development costs 119 149
Total 598 600
Annual accounts of the European Union 2024
103
3.17. SEGMENT REPORTING BY MULTIANNUAL FINANCIAL FRAMEWORK (MFF) HEADING
EUR million
Single Market,
Innovation and
Digital
Cohesion and
Values
Natural
Resources and
Environment
Migration and
Border
Management
Resilience,
Security and
Defence
Neighbourhood
and the World
European
Public
Administration
Not assigned
to MFF
heading*
Total
GNI resources – – – – – – – 95 037 95 037
Traditional own resources – – – – – – – 20 587 20 587
VAT – – – – – – – 24 547 24 547
New Own Resources – – – – – – – 8 227 8 227
Fines – – – – – – – 4 039 4 039
Recovery of expenses 82 (19) 831 2 1 56 0 3 957
Other 4 090 6 163 15 177 – 846 2 454 (3 070) 10 673
Revenue from non-
exchange transactions
4 172 6 144 846 179 1 902 2 454 149 371 164 068
Financial revenue 1 176 26 3 – 6 228 272 7 295 9 005
Other 197 (24) (19) (0) (5) 18 1 445 979 2 592
Revenue from exchange
transactions
1 373 2 (16) (0) 1 246 1 717 8 274 11 597
Total revenue 5 545 6 146 830 179 2 1 148 4 171 157 644 175 665
Expenses implemented by
Member States:
EAGF – – (40 267) – – – – – (40 267)
EAFRD & other rural
development instruments
– – (14 779) – – – – – (14 779)
ERDF & CF – (28 763) – – – (88) – 18 (28 833)
ESF – (18 037) – – – – – – (18 037)
Other – (562) (938) (1 844) (173) (106) – (231) (3 854)
Implemented by the EC,
executive agencies and trust
funds
(15 193) (71 672) (969) (263) (1 208) (8 828) (3) (836) (98 971)
Implemented by other EU
agencies and bodies
(3 530) (595) (105) (1 266) (254) (44) (111) 1 517 (4 388)
Implemented by third
countries and int. org.
(466) (183) (13) (90) (145) (5 535) (1) (205) (6 639)
Implemented by other
entities
(22) (2 769) (5) (5) (82) (2 692) – (23) (5 599)
Staff and Pension costs (543) (24) (2) (1) (1) (181) (12 350) (1 865) (14 966)
Finance costs (1 858) (11) (72) (0) (0) (196) (78) (25 010) (27 226)
UK Withdrawal Agreement – – – – – – – (315) (315)
Other expenses (2 221) (239) (272) (6) (86) (287) (4 271) (1 616) (8 999)
Total expenses (23 834) (122 856) (57 422) (3 475) (1 949) (17 957) (16 815) (28 566) (272 873)
Economic result of the
year
(18 290) (116 710) (56 592) (3 296) (1 947) (16 809) (12 643) 129 079 (97 208)
* ‘Not-assigned to MFF heading’ includes consolidated entities' budget execution and consolidation eliminations, off-budget operations and unallocated programmes with individually immaterial amounts.
The display of revenue and expenses by MFF heading is based on estimation as not all commitments are linked to an MFF heading.
Annual accounts of the European Union 2024
104
4. CONTINGENT LIABILITIES AND ASSETS
Contingent liabilities are possible future payment obligations for the EU that may arise due to past events
or legally binding commitments taken but which will depend on future events not wholly under the
control of the EU. They relate mainly to guarantees given and to legal risks. All contingent liabilities,
except those relating to fines, guarantees and financial instruments up to the level they are
covered by funds (see note 2.4.2.1), would be financed, should they fall due, by the EU budget
(and thus the EU Member States) in the years to come.
4.1. Guarantees given by the EU budget
4.1.1. Guarantees given under the EU budgetary guarantee programmes (nominal)
EUR million
31.12.2024
Guarantees given Assets
provisioned*
Ceiling Signed Disbursed
EIB ELM guarantees 25 772 25 772 19 184 3 400
EFSI guarantee 25 373 22 998 21 033 8 941
EFSD guarantee 759 667 521 785
InvestEU guarantee 27 042 11 769 3 468 6 802
NDICI external action guarantee 30 173 11 228 1 341 2 943
Ukraine Guarantee 790 172 132 202
Total 109 909 72 606 45 678 23 073
*
The EUR 3.4 billion of assets provisioned for the EIB ELM guarantees also cover loans and related borrowings under legacy MFA and
Euratom (see note 2.4.1.1).
EUR million
31.12.2023
Guarantees given Assets
provisioned*
Ceiling Signed Disbursed
EIB ELM guarantees 27 729 27 729 19 856 2 962
EFSI guarantee 25 591 23 635 21 551 9 175
EFSD guarantee 1 077 548 478 765
InvestEU guarantee 25 767 6 592 1 433 3 736
NDICI external action guarantee 28 115 7 660 634 2 222
Total 108 279 66 163 43 953 18 860
*
The EUR 3.0 billion of assets provisioned for the EIB ELM guarantees also cover loans and related borrowings under legacy MFA and
Euratom (see note 2.4.1.1).
The above tables show the extent of the exposure of the EU budget to possible future payments linked to
guarantees given to the EIB group or other financial institutions. Disbursed amounts represent the
amounts already given to final beneficiaries, while signed amounts include these disbursed monies plus
agreements already signed with beneficiaries or financial intermediaries but not yet disbursed at year-end
(EUR 26.9 billion). The ceiling represents the total guarantee that the EU budget, and thus its Member
States, have committed to cover, since in order to disclose the maximum exposure faced by the EU at
31 December 2024, operations authorised to be signed but not yet signed (EUR 37.3 billion) must be
included.
Budgetary guarantee programmes are backed by provisions gradually built up from the budget and kept
in the Common Provisioning Fund (‘CPF’) as a liquidity cushion to cover future guarantee calls (see note
2.4.2.1). Please see note 6.2 for the measures put in place to ensure that the provisioning is sufficent to
cover the guarantee calls in the medium term. Any losses incurred under the budgetary guarantee
programmes, above the provisioning set aside, would need in any case to be covered by future budgets.
For the InvestEU Member State compartment, the EU also receives counter guarantees from the Member
States and EEA countries (see below).
Annual accounts of the European Union 2024
105
EIB ELM guarantees
The EU budget guarantees loans signed and granted by the EIB from the EIB's own resources to third
countries. At 31 December 2024 the amount of loans outstanding and covered by the EU guarantee
totalled EUR 19 184 million. The EU budget guarantees:
— EUR 18 960 million via the Guarantee Fund for external actions compartment of the CPF; and
— EUR 224 million directly for loans granted to Member States before accession.
Included in the guarantees given as at 31 December 2024 are EUR 2.1 billion of signed but undisbursed
loans for which future disbursements are conditional on approval by the EU.
The EU ELM guarantee relating to loans granted by the EIB is limited to 65% of the outstanding balances
for agreements signed after 2007 (mandates 2007-2013 and 2014-2021). For agreements made before
2007, the EU guarantee is limited to a percentage of the ceiling of the credit lines authorised, in most
cases 65% but also 70%, 75% or 100%. Where the ceiling is not reached, the EU guarantee covers the
full amount.
With Decision (EU) 2018/412 of the European Parliament and of the Council28
, a private sector lending
mandate for projects directed to the long term economic resilience of refugees, migrants, host and transit
communities under the EIB Resilience Initiative (‘ERI’) was set-up. The Union budget is remunerated for
the risk taken in relation to guarantees granted for EIB financing operations under the ERI Private
Mandate, which explains the premium receivable for the ELM guarantee, which is otherwise a non-
remunerated guarantee (see note 2.11.2).
The ELM 2014-2020 mandate, which expired in 2021, was the last mandate under the Guarantee Fund
for external actions. The new EIB mandate is covered by the External Action Guarantee set up by the
NDICI Regulation.
EU guarantee payments are made from the Guarantee Fund for external actions compartment of the CPF.
During 2024, EUR 11 million of guarantee calls net of recoveries have been paid out (2023:
EUR 67 million).
European Fund for Strategic Investments (EFSI) guarantee
EFSI is an initiative that aims to increase the risk bearing capacity of the EIB Group by enabling the EIB
to extend its investments in the EU. The objective of EFSI is to support additional investments in the EU
and access to finance for small companies. The EU budget provides a guarantee of up to EUR 26 billion
(‘EFSI EU guarantee’) under an agreement between the EU and the EIB, hereinafter referred to as the
‘EFSI Agreement’, in order to protect the EIB from potential losses it may suffer from its financing and
investment operations.
The EFSI operations are conducted within two windows: the Infrastructure and Innovation Window (IIW)
implemented by the EIB (EFSI EU guarantee of EUR 19 250 million) and the SME Window (SMEW)
implemented by the EIF (EFSI EU guarantee of EUR 6 750 million), both of which have a debt portfolio
and an equity portfolio. The EIF acts under an agreement with the EIB on the basis of an EIB guarantee,
which itself is counter-guaranteed by the EFSI EU Guarantee under the EFSI Agreement. In order to
enhance the efficiency of EU Guarantee and to increase its risk bearing capacity, a combination of two
EFSI debt portfolios with InvestEU became effective in 2022. Any guarantee calls, recoveries and
revenues are distributed between the EFSI and the InvestEU Guarantee based on effective guaranteed
allocations.
The EU and the EIB have distinct roles within EFSI. EFSI is established within the EIB, who finance the
operations (debt and equity investments) and, to do this, borrow the necessary funds on the capital
markets. The EIB Group takes the investment decisions independently and manages the operations in
accordance with its rules and procedures. The EU provides the guarantee for those operations, and
covers losses incurred by the EIB up to the ceiling of this guarantee.
28
Decision (EU) 2018/412 of the European Parliament and of the Council of 14 March 2018 amending Decision No
466/2014/EU granting an EU guarantee to the European Investment Bank against losses under financing operations
supporting investment projects outside the Union (OJ L 76, 19.3.2018, p. 30).
Annual accounts of the European Union 2024
106
As the control criteria and accounting requirements for consolidation under the EU accounting rules (and
IPSAS) are not met, the related guaranteed assets are not accounted for in the consolidated annual
accounts of the EU.
The EU guarantee granted to the EIB Group under EFSI is accounted for as a financial guarantee liability
in respect of the IIW debt portfolio and the SMEW debt portfolio (see note 2.11.2) and as a derivative
(financial asset or liability at fair value through surplus or deficit) for both equity portfolios (see note
2.4.2.2). The EFSI guarantee given includes operations of the COSME, H2020, CCS LGF and EaSI
programmes for the part covered by the EFSI EU guarantee under the SMEW debt portfolio.
During 2024, EUR 151 million of net guarantee calls were paid out from the EFSI Guarantee Fund
compartment of the CPF, including some guarantee calls incurred in previous years but temporarily
covered by the EU revenues hold on the EFSI settlement account at the EIB (2023: EUR 193 million).
European Fund for Sustainable Development (EFSD)
The European Fund for Sustainable Development, established by the EFSD Regulation, is an initiative
aiming to support investments in Africa and the European Neighbourhood as a means to contribute to the
achievement of sustainable development and to address specific socio-economic root causes of migration.
Under the EFSD Regulation, the EU was authorised to make available guarantees of EUR 1.5 billion
(further increased by external contributions) to implementing partners for their investment and financing
operations, in order to reduce their investment risks. The EFSD Guarantee is backed by the CPF – see
note 2.4.2.1.
For one of the EFSD guarantee agreements (where the EU guarantees the capital adequacy of a currency
hedging fund for an amount of EUR 145 million), in case of a guarantee call the EU holds
a reimbursement right to receive shares of the fund worth the amount paid.
NDICI external action guarantee
Regulation (EU) 2021/947 of the European Parliament and of the Council29
, established the
Neighbourhood, Development and International Cooperation Instrument – Global Europe (the
‘Instrument’), including the European Fund for Sustainable Development Plus (the ‘EFSD+’) and the
External Action Guarantee, for the period of the 2021-2027 MFF. The objective of EFSD+ is to promote
sustainable investments in the EU’s partner countries.
The External Action Guarantee supports the EFSD+ operations covered by budgetary guarantees, macro-
financial assistance and loans to third countries. It is backed by the CPF – see note 2.4.2.1.
As at 31 December 2024, budgetary guarantee agreements were effective for a total outstanding ceiling
of EUR 30.2 billion, of which EUR 26.0 billion relates to a guarantee agreement signed with the EIB as
a successor of the ELM programme.
InvestEU guarantee
Through the InvestEU programme the Commission can provide up to EUR 26.2 billion in guarantees to
support investments with the backing of the EU budget. This EU guarantee supports private and public
investments in four policy areas: sustainable infrastructure, research innovation and digitalisation, small
and medium-sized companies, and social investment and skills. Several financial partners like national
promotional banks are receiving the EU guarantee. They support investments by providing loans,
guarantees or equity capital. For example, the financial partners can provide loans to SMEs, participate in
equity funds or give guarantees to commercial banks for loans they disburse. The Commission can also
allocate EU budget from other EU programmes to the InvestEU Fund, for example from the HERA Invest
(health), the European Space programme or the Catalyst (innovation).
To create a capital buffer for the losses from guaranteed investments, the Commission is gradually
setting money aside (‘provisioning’) from the EU budget into the CPF. The InvestEU Regulation has set
the provisioning at 40% of the EU guarantee.
29
Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the
Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing
Decision No 466/2014/EU of the European Parliament and of the Council and repealing Regulation (EU) 2017/1601
of the European Parliament and of the Council and Council Regulation (EC, Euratom) No 480/2009, (OJ L 209,
14.6.2021, p. 1).
Annual accounts of the European Union 2024
107
The EU guarantee can be increased, in addition to the EUR 26.2 billion mentioned above, with the
backing from Member States and EEA countries. They can contribute money from their Cohesion Policy,
RRF funds or national budgets. For the Member States, the provisioning is set on a case by case basis,
while the additional EU guarantee backed from EEA countries is 40% provisioned with cash contributions.
The cash from Member States and EEA countries is kept in the CPF. The non-provisioned amount is
covered with counter guarantees from the Member States and the EEA countries. At 31 December 2024,
there were agreements with seven Member States and two EEA countries, based on which the
Commission may provide additional EU guarantee of EUR 2.8 billion to financial partners, out of which
EUR 2.2 billion is to be backed by cash contributions and EUR 0.6 billion with counter guarantees. Indeed,
EUR 2.8 billion of such guarantee agreements had been signed until 31 December 2024, with several
implementing partners.
Ukraine guarantee
Following the Ukraine Facility Regulation, the EU has established the Ukraine Guarantee for a maximum
guarantee capacity of EUR 7.8 billion, to boost investments for the recovery and reconstruction of
Ukraine.
As at 31 December 2024, four budgetary guarantee agreements were signed and effective for the total
cover limit of EUR 0.8 billion.
UK obligations arising from its departure from the EU
In accordance with Article 143 of the Withdrawal Agreement, the UK is liable to the Union for its share of
contingent financial liabilities related to EFSI, EFSD and the EIB external lending mandate operations
approved by the withdrawal date, 31 January 2020. Article 143 requires that in case of a guarantee call
for a financial operation that has been approved before the withdrawal date, the UK would be liable to the
Union for its share of payments made by the Union under those operations, unless this could be covered
by the UK share of provisioning held in the guarantee fund where this is relevant.
For ELM, the value of the EU budgetary guarantee at the withdrawal date, for the operations approved by
the withdrawal date, was EUR 33.7 billion. At 31 December 2024 this had changed to EUR 20.6 billion
(2023: EUR 22.2 billion). The UK share of this contingent liability at 31 December 2024 is thus EUR 2.6
billion (31 December 2023: EUR 2.8 billion). As stated above however, any default on these loans is first
covered by the Guarantee Fund for external actions compartment of the CPF and amounts would only be
called from the UK if the UK provisioning for this fund, of EUR 260 million at 31 December 2024, was not
sufficient.
With respect to EFSI operations, the value of the EU budgetary guarantee at the withdrawal date, for the
operations approved by the withdrawal date, was EUR 23.5 billion. At 31 December 2024 this had
changed to EUR 17 billion (2023: EUR 18.6 billion). The UK share of this contingent liability at 31
December 2024 is thus EUR 2.1 billion. Any guarantee calls under EFSI are first covered by the EFSI
guarantee fund compartment of the CPF and amounts would only be called from the UK if the UK
provisioning for this fund, of EUR 584 million at 31 December 2024, was not sufficient.
As no operations had been approved by the implementing partners in relation to the EFSD Guarantee
before the withdrawal date, the UK has no obligations here.
The UK share of the payments made in 2024 for the operations approved on or after the withdrawal date
and up to 31 December 2020 amounted to EUR 74 million (EUR 69 million for EFSI and EUR 5 million for
ELM), reducing correspondingly the UK provisioning. The amount due to the UK in 2025 is EUR 190.6
million (see note 2.6.1.2).
4.1.2. Guarantees given under EU financial instrument programmes (nominal)
EUR million
31.12.2024 31.12.2023
Horizon 2020 2 145 2 352
Connecting Europe Facility 649 649
COSME 378 526
Other 471 511
Total 3 642 4 037
Annual accounts of the European Union 2024
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The amounts in the above table present the outstanding nominal amounts of the guarantees given under
the EU financial instruments programmes.
As outlined in Article 210 (1) FR, the budgetary expenditure linked to a financial instrument and the
financial liability of the EU shall in no case exceed the amount of the relevant budgetary
commitment made for it, thus avoiding contingent liabilities for the budget. In practice, it means that
these liabilities have a counterpart on the asset side of the balance sheet or are covered by the
outstanding budgetary commitments not yet expensed.
The COSME Loan Guarantee Facility (LGF) consists primarily of capped guarantees for portfolios of higher
risk debt financing (mainly loans) offered by financial intermediaries to SMEs. The COSME LGF is
implemented by the EIF on behalf of the EU.
For more details on Horizon 2020 and the Connecting Europe Facility see also note 2.4.2.1.
UK obligations arising from its departure from the EU
With regard to the EU’s contingent liabilities for amounts approved by the withdrawal date in relation to
EU financial instruments, including those above, should any of these contingencies crystalise, they would
be covered by the EU budget using monies held on fiduciary accounts. Thus in principle no amounts
would be called from the UK other than its share in the budgetary RAL as outlined under Article 140 of
the WA – see note 2.6.1.2.
4.2. Contingent liabilities relating to legal cases
4.2.1. Legal cases in the area of fines
At 31 December 2024, the contingent liabilities relating to fines amounted to EUR 2 178 million (2023:
EUR 2 231 million). This amount includes fines imposed on companies (EUR 1 451 million, see note
2.6.1.3) and fines imposed on Member States (EUR 727 million) that have been provisionally paid and
for which either an appeal has been lodged or for which it is unknown whether an appeal will be made.
The contingent liability will be maintained until a judgement by the Court of Justice of the European
Union is delivered or until the expiry of the period for appeal. Interest earned on provisional payments is
included in the economic result of the year and also as a contingent liability to reflect the uncertainty of
the Commission’s title to these amounts. Should the EU lose any of the cases relating to fines imposed,
the amounts that have been provisionally received will be returned to the companies or Member States
without budgetary impact. The amount of fines is only recognised as budgetary revenue when the fines
are definitive (Article 107 FR).
4.2.2. Other legal cases
EUR million
31.12.2024 31.12.2023
Agriculture 77 84
Other 67 73
Total 144 157
Agriculture
These are contingent liabilities towards the Member States connected with EAGF and rural development
conformity decisions pending judgement of the Court of Justice. The determination of the final amount of
the liability and the year in which the effect of successful appeals will be charged to the budget will
depend on the length of the procedure before the Court.
Other legal cases
This heading relates to actions for damages currently being brought against the EU, other legal disputes
and the estimated legal costs. It should be noted that in an action for damages under Article 340 TFEU,
the applicant must demonstrate a sufficiently serious breach by the institution of a rule of law intended to
Annual accounts of the European Union 2024
109
confer rights on individuals, real harm suffered by the applicant, and a direct causal link between the
unlawful act and the harm.
UK obligations arising from its departure from the EU
Under Article 147 of the WA, the United Kingdom shall be liable for its share of the payments required to
discharge the contingent liabilities of the Union that become due in relation to legal cases concerning the
financial interests of the Union, provided that the facts forming the subject matter of those cases
occurred no later than 31 December 2020. The estimated maximum UK exposure here is EUR 15 million
(2023: EUR 18 million). For legal cases where it is considered probable that amounts will be paid from
the EU budget (see note 2.10), the UK share is included as part of the overall amount due from the UK –
see details under note 2.6.1.2.
4.3. CONTINGENT ASSETS
EUR million
31.12.2024 31.12.2023
Guarantees received:
Performance guarantees 275 249
Other guarantees 5 6
Other contingent assets 15 15
Total 295 270
Performance guarantees are requested to ensure that beneficiaries of EU funding meet the obligations of
their contracts with the EU.
Annual accounts of the European Union 2024
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5. BUDGETARY AND LEGAL COMMITMENTS
This note provides information on the budgetary process and future funding needs and not on liabilities
existing as at 31 December 2024.
The Multiannual Financial Framework (MFF) agreed by the Member States defines the programmes and
sets out the heading ceilings for commitment appropriations and the total for payment appropriations
within which the EU may enter into budgetary and legal commitments, and ultimately make payments for
a period of 7 years – see table 3.2 in the notes to the budgetary implementation reports.
Legal commitments correspond to programmes, projects, agreements or contracts signed, thus legally
binding the EU. A legal commitment is the act whereby the authorising officer enters or establishes an
obligation (for the EU) which results in a charge (Article 2 (37) FR).
A budgetary commitment is in principle made before the legal commitment, but for some multiannual
programmes/projects it is the reverse, the relevant budgetary commitments being made in annual
instalments, over several years, when the basic act so provides for. For example, for cohesion, Article 86
of the Common Provisions Regulation (CPR) (Regulation (EU) 2021/1060) provides that the decision of
the Commission adopting a programme shall constitute a legal commitment within the meaning of the
Financial Regulation but that the budgetary commitments of the Union in respect of each programme
shall be made in annual instalments for each fund during the period between 1 January 2021 and
31 December 2027. Other legal bases may contain similar provisions. For this reason, there are amounts
that the EU has legally committed to pay, but where the budgetary commitment has not yet been made –
see note 5.2 below.
If the budgetary commitment has been made but the subsequent payments are not yet made, the
amount of outstanding commitments is called ‘Reste à Liquider’ (RAL). This can represent programmes or
projects, often multiannual, which are signed and for which payments will only be made in later years.
They represent payment obligations for future years. As the financial statements are prepared on an
accrual basis, whereas the budgetary implementation reports are prepared on a cash basis, part of the
overall amount unpaid (RAL) has already been expensed and is recognised as a liability on the balance
sheet (see notes 2.12 and 2.13). The calculation of these expenses is made based either on cost
claims/invoices received or on the estimated implementation of a programme or project where no claims
have been notified yet to the EU by the reporting date. Once the payments relating to the RAL are made,
the liability on the balance sheet is derecognised. The part of the RAL not expensed yet is not included
under liabilities but is instead disclosed below, see note 5.1.
The disclosures below thus represent amounts at 31 December 2024 that the EU has committed to pay
based on the fulfilment of the contractual agreements and which are therefore intended to be funded by
future EU budgets.
EUR million
Note 31.12.2024 31.12.2023
Outstanding budgetary commitments not yet expensed 5.1 428 588 466 467
Significant legal commitments 5.2 257 256 329 939
Total 685 844 796 407
5.1. OUTSTANDING BUDGETARY COMMITMENTS NOT YET
EXPENSED
EUR million
31.12.2024 31.12.2023
Outstanding budgetary commitments not yet expensed 428 588 466 467
The amount disclosed above is the budgetary RAL (‘Reste à Liquider’) of EUR 507 378 million (see
table 6.4 in the budgetary implementation reports), less related amounts that have been included as
liabilities on the balance sheet and as expenses in the statement of financial performance. The budgetary
RAL is an amount representing the open commitments for which payments and/or decommitments have
not yet been made. This is the normal consequence of the existence of multiannual programmes.
It should be noted that outstanding pre-financing advances at 31 December 2024 totalled
EUR 78.9 billion – see note 2.5. This represents budgetary commitments that have been paid, decreasing
Annual accounts of the European Union 2024
111
the RAL, but where the amounts paid are still considered as belonging to the EU and not to the
beneficiary, until the relevant contractual obligations are fulfilled. They are thus, like the RAL disclosed
above, not yet expensed.
5.2. SIGNIFICANT LEGAL COMMITMENTS
EUR million
31.12.2024 31.12.2023
Economic, Social and Territorial Cohesion 177 459 239 903
Natural Resources and Environment 46 659 62 365
Migration and Border Management 4 153 5 932
Security and Defence 520 743
ITER 9 898 6 926
Connecting Europe Facility 7 313 5 570
Space and Secure Connectivity Programmes 3 303 2 886
Ukraine Facility 2 270 –
RRF non-repayable support commitments 558 357
Innovation Fund 521 –
HorizonEU 519 589
Fisheries agreements 234 166
EURATOM 166 252
RESCUE 106 253
Operating lease commitments 2 721 2 528
Other contractual commitments 856 968
EU Solidarity Fund – 502
Total 257 256 329 939
*As of 2023, the amounts concerning security and defence (including comparatives) are presented separately from the
migration and border management.
These amounts reflect the long-term legal commitments that were not covered by commitment
appropriations in the budget at year-end. These binding obligations will be budgeted and paid in future
years.
Certain important programmes (see below) may be implemented by annual instalments according to
Article 112 (2) FR. This allows the EU to make legal commitments (sign grant agreements, delegation
agreements and procurement contracts) in excess of the available commitment appropriations of a given
year. Therefore a substantial amount of the overall allocation for the current MFF may be already
committed. This applies in particular for the programmes described below:
Funds under shared management
These are legal obligations that the EU has committed to pay when adopting the operational programmes
related to shared management. The decision of the Commission adopting an operational programme
constitutes a financing decision within the meaning of Article 110 FR and once notified to the Member
State concerned, it represents a legal commitment within the meaning of that Regulation.
Article 86 (2) of the Common Provisions Regulation (CPR) for shared management funds states:
‘The budgetary commitments of the Union in respect of each programme shall be made by the
Commission in annual instalments for each Fund during the period between 1 January 2021 and 31
December 2027’.
The amounts disclosed on the first four lines of the table above relate to the Heading 2A (Economic,
Social and Territorial Cohesion), Heading 3 (Natural Resources and Environment), Heading 4 (Migration
and Border Management) and Heading 5 (Security and Defence) of the MFF 2021-2027. They represent
the outstanding amounts that the EU will commit budgetarily and then pay after 31 December 2024.
Annual accounts of the European Union 2024
112
ITER – International Thermonuclear Experimental Reactor
These commitments are intended to cover future funding needs of the ITER facilities. The EU (Euratom)
contribution to ITER International is given through the Fusion for Energy Agency, including also the
contributions from Member States and from Switzerland. ITER was created to manage and to encourage
the exploitation of the ITER facilities, to promote public understanding and acceptance of fusion energy,
and to undertake any other activities that are necessary to achieve its purpose. ITER involves the EU
together with various other countries.
Connecting Europe Facility (CEF2)
The CEF2 provides financial assistance to trans-European networks in order to support projects of
common interest in the sectors of transport, telecommunications and energy infrastructures. The legal
commitments for the CEF programme cover an implementation period running from 2021 until 2027 for
CEF Energy (with a possibility to be extended). The legal basis of these commitments is the Regulation
(EU) 2021/115330
with article 4.5 stating that ‘Budgetary commitments for actions extending over more
than one financial year may be broken down into annual instalments, over two or more years’.
Space and Secure Connectivity Programmes
The space programme (EUR 2 672 million) includes the following components: Galileo, EGNOS,
Copernicus, Govsatcom and SSA. The most significant are Galileo, which is developing the European
Global Navigation Satellite System, and Copernicus, which is related to the European Earth observation.
These commitments are made for the period until 2027. Based on Regulation (EU) 2021/696 of the
European Parliament and of the Council31
, the Commission signed contribution agreements with the
European Space Agency (ESA), EUMETSAT, Mercator and the European Centre for Medium Range
weather forecasts. Article 11.6 of Regulation (EU) 2021/696 authorises the use of annual instalments.
The Secure Connectivity Programme (EUR 631 million) aims to improve EU communication services by
developing and operating a multi-orbital connectivity infrastructure, based on a public-partnership model.
It will ensure the provision of worldwide secure, flexible, and resilient satellite communication services to
the Union and Member States governmental entities. In this respect, based on Regulation (EU)
2023/588) of the European Parliament and of the Council32
, a concession contract was awarded to a
grouping of companies.
Ukraine Facility non-repayable support commitments
The Ukraine Facility was set up to support Ukraine in addressing its financing gap and recovery,
reconstruction and modernisations needs. It was established by Regulation (EU) 2024/792 of the
European Parliament and of the Council for the period 2024 to 2027. Pursuant to Article 6 (1) of
Regulation (EU) 2024/792, the resources for the implementation of the Facility shall be available through
the Ukraine Reserve mobilised in the framework of the annual budgetary procedure in accordance with
Article 10b of Regulation (EU, Euratom) 2020/2093. This appropriation finances support under three
pillars (Ukraine Plan, Ukraine Investment Framework, Union Accession Assistance and Related Support
Measures) in accordance with the indicative distribution laid down in the Regulation.
RRF non-repayable support commitments
The RRF is a key programme of NGEU, the EU Recovery Instrument. It was established by Regulation
(EU) 2021/24133
which finances reforms and investments in Member States from the start of the
coronavirus pandemic in February 2020 until 2026. Article 23 of Regulation (EU) 2021/241 authorises the
use of annual instalments. In 2023, the RRF was amended by Regulation (EU) 2023/435 to provide
additional support to Member States through REPowerEU chapters for reforms and investments fostering
independence, security and sustainability of the Union’s energy supply.
30
Regulation (EU) 2021/1153 of the European Parliament and of the Council of 7 July 2021 establishing the
Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) No 283/2014 (OJ L 249,
14.7.2021, p. 38).
31
Regulation (EU) 2021/696 of the European Parliament and of the Council of 28 April 2021 establishing the Union
Space Programme and the European Union Agency for the Space Programme and repealing Regulations (EU) No
912/2010, (EU) No 1285/2013 and (EU) No 377/2014 and Decision No 541/2014/EU (OJ L 170, 12.5.2021, p. 69).
32
Regulation (EU) 2023/588 of the European Parliament and of the Council of 15 March 2023 establishing the Union
Secure Connectivity Programme for the period 2023-2027 (OJ L 179, 17.3.2023, p. 1).
33
Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the
Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).
Annual accounts of the European Union 2024
113
Innovation Fund
The Directive 2023/95934
, amending Directive 2003/87/EC establishing a system for greenhouse gas
emission allowance trading within the Union and Decision (EU) 2015/1814 concerning the establishment
and operation of a market stability reserve for the Union greenhouse gas emission trading system,
provides in its article 10 Paragraph 8 that ‘Budgetary commitments for actions extending over more than
one financial year may be broken down into annual instalments over several years’. This provision is
applicable for the new actions signed as from 2024, including the actions financed through calls for
proposal or within a competitive bidding mechanism.
Horizon Europe
These are amounts committed to the Horizon Europe programme for secured connectivity, upstream and
downstream activities for the various space components. These commitments are made for the period
until 2027. Based on Regulation (EU) 2021/69535
, the Commission signed a contribution agreement with
ESA. Article 12.8 of the Regulation authorises the use of annual instalments.
Fisheries agreements
These represent commitments entered into with third countries for operations under international
fisheries agreements up to 2030. The commitments made are based on Council decisions for each third
country (e.g. agreement between the EU and the Government of Greenland and the Government of
Denmark and the Implementation Protocol; OJ L 2024/3202 and 3203, 30.12.2024) and are considered
specific international treaties with multiannual rights and obligations.
EURATOM
EURATOM is a programme based on Council Regulation (Euratom) 2021/76536
. Article 4 of the regulation
foresees the use of the annual instalments.
The general objective of the Programme is to pursue nuclear research and training activities, with an
emphasis on the continuous improvement of nuclear safety, security and radiation protection, as well as
to complement the achievement of Horizon Europe’s objectives inter alia in the context of the energy
transition. The Euratom Programme provides research grants through competitive calls for proposals and
to named beneficiaries.
RESCEU
RescEU is a European reserve of response assets and capabilities established under the Union Civil
Protection Mechanism, as part of the 2019 legislative revision of Decision No 1313/2013/EU37
. The
RescEU reserve was set up to act as a last resort when national capacities and those capacities
committed in the European Civil Protection Pool are not able to ensure an effective response to the
various kinds of disasters. The European Union finances those response capacities as a preparedness
measure to make them available in case of need for response operations under the Union Civil Protection
Mechanism. The priority domains of developing capacities under RescEU are the areas of aerial forest-
firefighting, chemical, biological, radiological and nuclear incidents, emergency medical response, as well
as transport and logistics.
34
Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 amending Directive
2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision
(EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse
gas emission trading system (OJ L 130, 16.5.2023, p. 134)
35
Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon
Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and
dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 (OJ L 170, 12.5.2021, p. 1).
36
Council Regulation (Euratom) 2021/765 of 10 May 2021 establishing the Research and Training Programme of the
European Atomic Energy Community for the period 2021-2025 complementing Horizon Europe – the Framework
Programme for Research and Innovation and repealing Regulation (Euratom) 2018/1563 (OJ L 167I, 12.5.2021, p.
81).
37
Decision No 1313/2013/EU of the European Parliament and of the Council of 17 December 2013 on a Union Civil
Protection Mechanism (OJ L 347, 20.12.2013, p. 924).
Annual accounts of the European Union 2024
114
Operating lease commitments
Minimum amounts committed to be paid according to the underlying contracts during the remaining term
of these lease contracts are as follows:
EUR million
Minimum lease payments
< 1 year 1- 5 years > 5 years Total
Buildings 519 1 062 1 087 2 668
IT materials and other equipment 14 36 3 53
Total 532 1 099 1 090 2 721
In March 2019, in the context of the United Kingdom’s notification of its intention to withdraw from the
EU, and as a result of Regulation (EU) 2018/171838
, the seat of the European Medicines Agency (EMA)
was relocated from London to Amsterdam. On 2 July 2019, the Agency reached an agreement with its
landlord and since then has sublet its premises to a subtenant under conditions that are consistent with
the ones of the headlease, including the sublease term that extends until the expiry of EMA’s headlease
in June 2039.
The amounts disclosed in the table above include EUR 369 million still due under the headlease contract.
Other contractual commitments
The amounts included under this disclosure correspond to amounts committed to be paid during the term
of the contracts. The most significant amount included here relates to a building contract (JMO2) of the
Commission in Luxembourg (EUR 422 million).
38
Regulation (EU) 2018/1718 of the European Parliament and of the Council of 14 November 2018 amending
Regulation (EC) No 726/2004 as regards the location of the seat of the European Medicines Agency (OJ L 291,
16.11.2018, p. 3).
Annual accounts of the European Union 2024
115
6. FINANCIAL RISK MANAGEMENT
The EU's financial risk management disclosures cover several key areas:
— The Commission's borrowing and lending activities for financial assistance through programmes
like NGEU, EFSM, BOP, MFA, SURE, Ukraine Facility and Euratom.
— The Commission's treasury operations to execute the EU budget.
— Assets held in funds like the CPF, the ECSC i.L., and the BUFI portfolio.
— Financial instruments supported by the EU budget.
— EU budgetary guarantee programmes.
6.1. TYPES OF FINANCIAL RISK
The EU faces financial risks from its financial instruments:
Market risk: This is the uncertainty of investment value due to changes in market prices. It includes
risks such as:
— Currency risk: Changes in exchange rates can affect the EU's operations and investments.
— Interest rate risk: Higher interest rates can lower the value of certain investments, like bonds.
— Other price risk: This includes various factors (other than interest rates and foreign exchange
rates) that can affect investment values, such as changes in market prices or factors specific to
individual investments.
Credit risk: This is the risk that a borrower won't pay back a loan or meet their contractual obligations,
leading to default events like delayed payments or bankruptcy.
Liquidity risk: This is the risk that an EU entity won't have enough money or assets to meet its financial
obligations.
6.2. RISK MANAGEMENT POLICIES
Measurement of financial instruments
The following classes of financial assets and liabilities are not measured at fair value: cash and cash
equivalents, loans at amortised cost, exchange receivables other than financial guarantee contract
receivables when classified to financial assets at FVSD, borrowings, financial guarantee contracts and
other financial liabilities measured at amortised cost. The carrying amount of those financial assets and
liabilities is considered to be a reasonable approximation of their fair value.
Risk Governance for borrowing, debt management, and related lending operations
The EU's risk management framework is designed to protect the Union's financial and reputational
interests, while ensuring the sound management of its borrowing and lending operations. Although the
European Commission is not a financial institution, it employs advanced risk management practices
tailored to the EU's unique structure and programme requirements. The primary goal of the framework is
to safeguard the Union's financial interests and maintain the integrity, transparency, and trustworthiness
of its operations, particularly those related to the NGEU programme.
The framework, developed by the Chief Risk Officer (CRO), includes key policies such as the High-Level
Risk and Compliance Policy, the Market and Funding Liquidity Risk Policy, and the Operational Risk
Management Policy. The CRO sets hard and soft risk limits and Key Risk Indicators to monitor and
evaluate risks.
Regular risk reports ensure compliance with limits, highlight risk exposures, and propose mitigation
strategies. A ‘three lines of defence’ model strengthens governance by segregating powers, defining
authority, and clarifying roles in risk management and control.
Annual accounts of the European Union 2024
116
Supported by the Risk and Compliance Committee, the CRO implements the risk management framework
via internal policies and procedures. This committee advises the CRO on risk-related matters, particularly
for NGEU operations.
The adoption of the Commission Implementing Decisions (EU, Euratom) 2022/254439
and 2023/282540
expanded the CRO's responsibilities to oversee:
— Borrowing operations under both the unified funding approach and back-to-back funding method
for financial assistance programmes.
— Credit risk assessment for loans to Member States and third countries under NGEU, MFA, MFA+
for Ukraine, and similar programmes.
— Debt management operations.
— Liquidity management operations.
The CRO enjoys autonomy in carrying out their tasks and responsibilities, and reports to the Member of
the College responsible for the Budget as per the Commission Implementing Decision (EU, Euratom)
2023/2825. This ensures independence in executing assigned tasks and responsibilities.
Borrowing and lending activities for financial assistance and NGEU
The EU does not borrow money to fund its operational expenditure, except for the borrowing related to
the NGEU.
The EU's borrowing and lending operations are managed in accordance with relevant regulations,
decisions, and internal guidelines. Detailed manuals govern activities such as borrowings and loans, and
the relevant units continuously assess financial and operational risks while ensuring compliance.
Historically, the EU's lending operations were financed through ‘back-to-back’ borrowings, which
minimised open interest rate or currency risks. However, as of 2021 the EU also borrows money under a
unified funding approach.
The unified funding approach, originally developed for NGEU utilises various funding instruments and
techniques to meet both long- and short-term funding needs. This includes the issuance of EU-branded
bonds, replacing the previous practice of separate issuances for each programme. Since December 2022,
this strategy has been expanded to MFA+ loans for Ukraine, in 2023 to Ukraine Facility programme and
since 2024 to other MFA loans. The usage of unified funding approach is enhancing flexibility and cost
efficiency.
Treasury
The rules and principles for the management of the Commission's treasury operations are laid down in
Council Regulation (EU, Euratom) No 609/201441
, as amended by Council Regulations (EU, Euratom)
2016/80442
and (EU, Euratom) 2022/61543
(referred hereafter to the ‘Council Regulation (EU, Euratom)
No 609/2014’) and in the Financial Regulation.
39
Commission Implementing Decision (EU, Euratom) 2022/2544 of 19 December 2022 establishing the arrangements
for the administration and implementation of the EU borrowing and debt management operations under the
diversified funding strategy and related lending operations (OJ L 328, 22.12.2022, p. 109–122).
40
Commission Implementing Decision (EU, Euratom) 2023/2825 of 12 December 2023 establishing the arrangements
for the administration and implementation of the Union borrowing and debt management operations under the
diversified funding strategy and related lending operations (OJ L, 2023/2825, 18.12.2023).
41
Council Regulation (EU, Euratom) No 609/2014 of 26 May 2014 on the methods and procedure for making available
the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements (Recast) (OJ L
168, 7.6.2014, p. 39–52).
42
Council Regulation (EU, Euratom) 2016/804 of 17 May 2016 amending Regulation (EU, Euratom) No 609/2014 on
the methods and procedure for making available the traditional, VAT and GNI-based own resources and on the
measures to meet cash requirements (OJ L 132, 21.5.2016, p. 85–94).
43
Council Regulation (EU, Euratom) 2022/615 of 5 April 2022 amending Regulation (EU, Euratom) No 609/2014 in
order to enhance predictability for Member States and to clarify procedures for dispute resolution when making
available the traditional, VAT and GNI based own resources (OJ L 115, 13.4.2022, p. 51–58).
Annual accounts of the European Union 2024
117
The following main principles apply:
— Own resources are paid by the Member States into accounts opened for this purpose in the name
of the Commission with the treasury or national central bank.
— Own resources are paid by Member States in their own national currencies, while the
Commission's payments are mostly denominated in EUR.
— Bank accounts opened in the name of the Commission may not be overdrawn, except in specific
cases such as loan defaults or excess cash requirements.
— Funds held in bank accounts denominated in currencies other than EUR are either used for
payments in the same currencies or periodically converted into EUR.
In addition to the own resource accounts, other bank accounts are opened by the Commission with
central banks and commercial banks for the purpose of executing payments and receiving receipts other
than the Member State contributions to the budget.
Treasury and payment operations are highly automated and rely on modern information systems.
Procedures are applied to guarantee system security, segregate duties, and ensure compliance with the
FR, internal control standards, and audit principles.
Guidelines and procedures regulate the management of the Commission's treasury and payment
operations, aiming to limit operational and financial risk and ensure adequate control. These guidelines
cover areas such as payment execution, cash management, cash flow forecasting and business
continuity. Compliance with them is monitored regularly.
Asset management
The control of the various risks related to the asset management activities is based on dedicated
governance and working procedures adopted following benchmarking with the highest standards adopted
by peer international institutions. These procedures, which were subject to various internal and external
audits, ensure the achievement of a sound asset management.
The Commission has put in place the appropriate governance to review and approve technical and
strategic decisions in relation to asset management operations. The asset management operations are
supervised by two committees: The Risk Committee, composed of representatives of DG BUDG and the
Asset Management Board, composed of representatives of DG BUDG, DG ECFIN and DG FISMA. Technical
decisions are discussed and approved in the Risk Committee, while strategic decisions are endorsed by
the Risk Committee and Asset Management Board before final approval of the Director General of DG
BUDG, in agreement with the Accounting Officer.
The asset management governance guarantees clear delegation of decision-making and lines of
accountability and adequate segregation of duties between Front Office, Risk Management and Back
Office. The compliance procedures provide the framework for adequate rules for codes of conduct to
manage potential personal conflicts of interest as well as rules to manage risks of insider trading.
The Asset Management Guidelines and internal investment restrictions provide a solid internal control
framework to ensure the safeguarding of assets. Securities are kept with our custodians in accordance
with market best practices, while cash and deposits are placed with highly rated financial institutions. The
safeguarding of financial assets is also assured by segregation of duties between the team responsible for
initiation of securities deals and the back-office team responsible for their settlement and bank accounts
reconciliation. An additional layer of control is assured by the accounting team during the monthly closure
reconciliation process when the portfolio of securities is reconciled with the security custodian’s
statement. Any settlement discrepancies and late payments caused by counterparties are followed by the
bank accounts reconciliation and back-office teams.
For the monitoring of the respect of the control framework, an exhaustive set of performance and risk
metrics for the assets under management is reported periodically to the relevant stakeholders.
The asset management guidelines, risk and investment strategies define certain limits and restrictions in
order to limit the exposure to credit risk of the portfolio, which is limited to investment grade, except for
EU Member States exposure.
Annual accounts of the European Union 2024
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Common Provisioning Fund
The CPF is managed according to the asset management guidelines set by the Commission, as per
Decision C(2020)1896 of 25 March 202044
. The Director General of DG BUDG is responsible for managing
the CPF's financial assets.
The CPF's objective is to ensure the necessary liquidity to meet all required outflows, such as guarantee
calls, fully and promptly, and to provide capital preservation over the investment horizon of the fund,
with a high confidence level.
The CPF portfolio is designed to be highly diversified across different asset classes, geographical areas,
issuers, and maturities, in accordance with the asset management guidelines. As at 31 December 2024,
the portfolio included investments in money market instruments, bonds and corporate as well as equity
ETFs.
As the sole counterparty for all outstanding currency forwards as at 31 December 2024 is the Banque de
France, no credit enhancements, such as collateral, netting agreements or guarantees are put in place as
of this date. The maximum exposure to credit risk for foreign exchange derivatives having a positive fair
value at the end of the reporting period is equal to the carrying amount on the balance sheet.
Fines
Provisionally paid fines: BUFI portfolio
Fines imposed and provisionally paid are invested in the BUFI portfolio.
The Commission manages the BUFI portfolio in accordance with internal asset management guidelines
and procedures. The objectives of the asset management activities are to:
— Ensure that the funds are easily available when needed;
— Reduce risks associated with financial markets; aim to deliver a return that is in line with the
BUFI Benchmark, while preserving the nominal amount for the fines.
Investments in the BUFI portfolio are restricted to:
— Term deposits with Member States' central banks, sovereign debt agencies, fully state-owned or
state-guaranteed banks or supranational institutions;
— Bonds, bills, and certificates of deposit issued by sovereign or supranational institutions.
Financial guarantees received
The Commission holds significant amounts of guarantees issued by financial institutions in relation to
fines imposed on companies breaching EU rules (see note 2.6.1.3). These guarantees are provided by
fined companies as an alternative to making provisional payments.
The Commission manages these guarantees in compliance with its internal risk management policy. This
policy ensures that financial and operational risks are regularly identified and evaluated, and that
compliance with internal policies and procedures is checked on a regular basis.
EU budgetary guarantee programmes
The FR has implemented several safeguards to protect the EU budget against financial risks created by
budgetary guarantees. These safeguards can be grouped into four main categories:
44
Commission Decision of 25 March 2020 on the asset management guidelines of the common provisioning fund 2020/C 131/03 (OJ C
131, 22.4.2020, p. 3–11).
Annual accounts of the European Union 2024
119
(a) Measures to limit contingent liabilities
The EU guarantee is capped in a clearly defined manner, and the financial liability cannot exceed the
amount of the budgetary guarantee authorised by its basic act. The contingent liability generated by a
budgetary guarantee can only exceed the financial assets provided to cover the EU financial liability if this
is provided for in the underlying basic act and under specific conditions.
The desired risk profile of the operations/financial products guaranteed by the EU is determined ex-ante,
i.e. before the signature of the guarantee agreements.
(b) Measures concerning the selection of implementing partners
Budgetary guarantee programmes are implemented with reliable, pillar-assessed partners. These
partners commit to using their own resources, ensuring alignment of interests with the EU.
(c) Measures to ensure adequate ex-ante budgetary capacity to absorb guarantee calls
Budgetary guarantee programmes are backed by provisioned assets kept in the CPF. The provisioning
rate is set in the basic act of each programme to allow the programming of budgetary appropriations to
constitute a provision that would allow the absorption of losses without budgetary disruption. The
Commission ensures annually that the provisioning rate is adequate and aligned with the FR principles
and financial programming.
(d) Measures to deal with realised losses exceeding ex-ante estimation
The FR includes two early warning thresholds (50% and 30% of the provisioning rate remaining
available). These thresholds allow the Commission to anticipate potential exhaustion of the provisioning
and evaluate whether to propose additional provisioning. In case of temporary additional liquidity needs,
procedures are in place, including transfers between CPF compartments, use of central treasury liquidity,
and use of available budgetary space.
Furthermore, a Steering Committee on Contingent Liabilities was established in 2020 to oversee
budgetary guarantees and financial assistance creating contingent liabilities to the budget. The
committee intervenes in matters related to risk management, standard agreements, and integrated
reporting to establish corporate requirements for sustainable management of contingent liabilities.
Financial instruments programmes
The EU's budget has relied on financial instrument programmes for many years. These programmes are
used to finance riskier beneficiaries who have difficulty obtaining funding from commercial lenders. The
Commission delegates the implementation of these programmes to the EIB Group or other financial
institutions through agreements with the Commission. See note 2.4.2.1 for examples of these.
Once a financial contribution to a financial instrument is committed, the necessary funds are transferred
to a fiduciary account opened by the financial institution in its name but on behalf of the Commission.
The financial institution may use these funds to provide loans, issue debt instruments, invest in equity
instruments, or cover guarantee calls.
The risk associated with these financial instruments is limited to the ceiling set out in the underlying
agreements, which is the budgeted amount foreseen for the instrument. As the Commission often bears
the first loss, it is likely that some losses to the EU budget will occur.
The Commission's agreements with financial institutions include strict conditions and obligations to
ensure proper management and reporting of EU funds. The proceeds from financial instruments are
generally reimbursed to the EU budget.
Annual accounts of the European Union 2024
120
6.3. CURRENCY RISK
Financial instruments exposure of the EU to currency risk at year-end – net position
EUR million
31.12.2024
USD RON PLN SEK Other EUR Total
Financial assets
Financial assets at AC* 40 5 – – 7 414 466
Financial assets at FVSD
Non-derivatives 2 148 – – 45 120 41 336 43 648
Derivatives – – – – – 1 110 1 110
Receivables** 72 1 17 1 111 3 039 3 240
Cash and cash equivalents 111 258 573 314 966 60 941 63 163
2 371 264 590 360 1 204 106 839 111 628
Financial liabilities
Financial guarantee liability (518) (36) (59) (12) (112) (5 643) (6 379)
Financial liabilities at FVSD (1 712) 285 76 75 138 1 040 (98)
(2 230) 248 17 63 26 (4 603) (6 477)
Total 141 512 607 423 1 230 102 237 105 151
EUR million
31.12.2023
USD RON PLN SEK Other EUR Total
Financial assets
Financial assets at AC* 39 5 – – 11 200 255
Financial assets at FVSD
Non-derivatives 1 568 – – 20 129 35 686 37 402
Derivatives (1 142) 17 21 74 65 2 055 1 091
Receivables** 123 2 28 1 120 3 757 4 032
Cash and cash equivalents 145 474 1 076 654 1 657 35 608 39 616
734 499 1 126 749 1 982 77 306 82 396
Financial liabilities
Financial guarantee liability (591) (32) (38) (15) (105) (5 488) (6 268)
Financial liabilities at FVSD (1) 152 – (3) (6) (201) (60)
(593) 120 (38) (18) (111) (5 689) (6 328)
Total 142 619 1 088 731 1 871 71 618 76 068
*
Excluding loans for RRF (NGEU) and for financial assistance.
**
Excluding deferred charges.
In the 2024 EU annual accounts, the RON was added to the currency risk exposure and the sensitivity
analysis, while the GBP was removed comparing to the 2023 EU annual accounts. The reason is a
decrease of the exposures in GBP since the United Kingdom left the EU in 2020 and a continued increase
of the exposures in RON.
If the EUR had strengthened or weakened against other currencies by 10%, then it would have had the
following impact on the economic result:
EUR million
FX Rate Increase (+)/
Decrease (-)
2024
USD RON PLN SEK
+10% (13) (47) (55) (38)
-10% 16 57 67 47
EUR million
FX Rate Increase (+)/
Decrease (-)
2023
USD RON PLN SEK
+10% (13) (56) (99) (66)
-10% 16 69 121 81
Annual accounts of the European Union 2024
121
Borrowing and lending activities for NGEU and financial assistance
Since all financial assets and liabilities of the EU are currently in EUR, the EU is not exposed to foreign
currency risk.
Treasury
Own resources paid by Member States in currencies other than EUR are kept on the own resource’s
accounts. When these funds are needed for payments, they are converted into EUR. In some cases, they
are directly used for payments in the same currencies.
The Commission also holds accounts in EU currencies other than EUR, such as USD, GBP, and CHF, with
commercial banks to execute payments in these currencies. These accounts are replenished as needed
which mitigates the currency risk.
When miscellaneous receipts are received in currencies other than EUR, they are either transferred to
Commission accounts in the same currencies or converted into EUR and transferred to accounts in EUR.
Imprest accounts in currencies other than EUR are replenished based on estimated short-term payment
needs and are kept within their respective ceilings.
Fines
All fines imposed, paid, or provisionally covered are in EUR, eliminating any foreign currency risk when
they are held in the BUFI Fund.
Budgetary guarantees
Budgetary guarantees are typically capped at a maximum amount in EUR. However, some underlying
operations may be denominated in other currencies, such as USD or local currencies.
The Commission considers currency risk when determining the provisioning needs for budgetary
guarantees.
Common Provisioning Fund
The CPF operates in both EUR and USD. To manage currency risk, the CPF enters into foreign exchange
forward contracts to hedge the market value of its USD investments, with the limit for maximum
unhedged foreign exchange exposure set at 1% of the total portfolio value within the benchmark and
annual strategy allocations, as defined in the relevant financial instruments. See note 2.4.1.2 for further
information.
The CPF uses this hedging strategy to adjust or reverse the hedged position accordingly, as needed.
However, the CPF does not hedge currency risk for subrogated loans (see note 2.4.1.2) that are carried
in their original currency, which expose the EU to currency risk. For these loans, there are no activities to
compensate for foreign currency variations, due to uncertainty relating to the loans' repayment timing.
6.4. INTEREST RATE RISK
The following table shows how a 1% change in interest rates (+/- 100 basis points) would affect the EU's
economic result for debt securities and ETFs.
EUR million
Increase (+) / decrease (-)
in basis points
Economic result
2024: Financial assets at FVSD
+100 (1 172)
-100 1 246
2023: Financial assets at FVSD
+100 (960)
-100 1 021
The sensitivity of a bond portfolio to interest rate changes increases with its duration. The duration of the
main asset portfolios managed by the Commission is outlined below.
Annual accounts of the European Union 2024
122
Borrowing and lending activities for NGEU and financial assistance
Due to its borrowing and lending activities, the EU has significant interest-bearing assets and liabilities.
However, for the financial assistance instruments, excluding borrowings under the unified funding
approach, there is no interest rate risk since the borrowings are offset by equivalent loans at the same
terms and conditions (back-to-back).
For the unified funding approach interest rate risk is covered by implementing procedures and
mechanisms that mitigate the risk. The underlying principle of the unified funding approach is to allocate
the cost of funding and related costs to loan beneficiaries and the EU budget in a transparent, most cost-
effective and equitable way, based on daily interest calculations. The unified funding is based on the
principle of full allocation of cost, so any interest cost coming from borrowing instruments, cash holding,
or other investment instruments are fully reallocated and invoiced to loan beneficiaries as cost of funding
costs or liquidity management costs.
The costs of funding are allocated to loan beneficiaries based on the outstanding amount of loans.
Funding costs not allocated to loans or non-repayable support are invoiced to loan beneficiaries and the
EU budget in the form of liquidity management costs, which can be positive or negative depending on the
evolution of interest rates applied on cash balances.
Under the unified funding approach, cash is held in an EU prudential and funding pool to maintain a
defined safety buffer while avoiding excess balances. The cash is kept at the ECB and since 4 April 2022,
the euro money market short-term interest rate minus 20 basis points applies to any outstanding cash
balance. Any revenues from cash holding and other investment instruments such as money market term
deposits are part of liquidity management cost invoicing.
Treasury
The Commission has measures in place to ensure that interest earned on its bank accounts regularly
reflects market interest rates and their possible fluctuations.
Own resources accounts are protected from any costs as they are free of any charge or interest in
accordance with Article 9.1 of Council Regulation (EU, Euratom) No 609/2014.
Accounts opened with Member States treasuries for own resources receipts are non-interest bearing and
free of charge. Accounts held with national central banks (own resources and other) may be remunerated
at the official rates applied by each institution.
The Commission adapts its cash management procedures according to current market interest conditions.
In 2023, the positive interest rates facilitated the implementation of the central account model. A safety
cash buffer is held on central deposit accounts based on a weekly funding from own resources accounts
to cover payment needs for the implementation of the budget while avoiding excess balances.
Overnight balances held on commercial and central bank accounts earn interest daily, based on variable
market rates with a contractual margin (positive or negative) applied.
Fines
The provisionally cashed fines are invested in a portfolio of long-term bonds with an average portfolio
duration of 1.55 years.
Common Provisioning Fund
The CPF portfolio has a total average duration of 3.42 years.
ECSC i.L.
The ECSC i.L. amounts are invested in a long-term bond portfolio with an average duration of 3.31 years.
6.5. OTHER PRICE RISK
As of 31 December 2024, the EU is exposed to equity risk from various investments, including:
Annual accounts of the European Union 2024
123
— Non-quoted equity investments (such as venture capital and other investment funds);
— Money market funds (such as the EIB Unitary Fund);
— ETFs;
— Investments in pooled portfolios (see note 2.4.2.1).
The EU is also exposed to equity risk through guarantees covering non-quoted equity and quasi equity
investments, which are treated as derivatives at fair value through surplus or deficit (see note 2.4.2.2).
Equity price risk is the risk that the fair values of equity investments change due to fluctuations in equity
prices and/or the value of guaranteed equity investments.
The effect on surplus or deficit of a 10% value increase or decrease of the above-mentioned instruments
would be as follows:
EUR million
10% (10)%
Equity investments 320 (320)
MMFs, ETFs and investments in pooled portfolios 598 (598)
Guarantees on equity* 606 (606)
Total at 31.12.2024 1 523 (1 523)
Equity investments 289 (289)
MMFs, ETFs and investments in pooled portfolios 481 (481)
Guarantees on equity* 506 (506)
Total at 31.12.2023 1 276 (1 276)
*
The risk of guarantees on equity is based on the notional amount that is covered by the guarantee.
The EU invests in or guarantees unquoted assets, whose values are not publicly available. These assets
are typically implemented by entrusted entities, which are experts in the industry and regularly assess
and monitor their value.
6.6. CREDIT RISK
Maximum credit risk exposure
EUR million
31.12.2024 31.12.2023
Financial assets
Loans 283 580 246 877
Cash and cash equivalents 63 163 39 616
Exchange receivables* 3 240 4 032
Financial assets at FVSD - debt securities 34 465 29 703
Financial assets at FVSD - derivatives 1 110 1 091
Guarantees given and loan commitments
FGCs 60 857 57 066
Loan commitments 18 193 40
Total 464 607 378 426
*
Excluding deferred charges.
In addition, the EU is indirectly exposed to the credit risk through its investments in MMFs, corporate
bond ETFs and pooled portfolios of debt securities (see note 2.4.2.1), which may impact their prices (see
note 6.5).
Annual accounts of the European Union 2024
124
Loans: credit quality
EUR million
31.12.2024
Stage 1 Stage 2 Stage 3 POCI Total
Credit rating
Prime and high grade 35 593 – – – 35 593
Upper medium grade 87 005 – – – 87 005
Lower medium grade 129 200 – – – 129 200
Non-investment grade (incl. default) 3 593 44 139 14 27 47 773
Gross carrying amount 255 391 44 139 14 27 299 571
Minus loss allowance (31) (15 969) (14) 24 (15 991)
Net carrying amount 255 360 28 170 (1) 51 283 580
EUR million
31.12.2023
Stage 1 Stage 2 Stage 3 POCI Total
Credit rating
Prime and high grade 36 302 – – – 36 302
Upper medium grade 72 051 – – – 72 051
Lower medium grade 113 652 – – – 113 652
Non-investment grade (incl. default) 2 130 31 762 25 38 33 955
Gross carrying amount 224 134 31 762 25 38 255 960
Minus loss allowance (54) (9 024) (23) 18 (9 083)
Net carrying amount 224 081 22 738 2 56 246 877
The risk categories mentioned above are in principle based on the rating scales of external rating
agencies. These categories correspond to:
— Prime and high grade: Moody’s P-1, Aaa – Aa3; S&P A-1+, A-1, AAA – AA -; Fitch F1+, F1, AAA –
AA- and equivalent;
— Upper medium grade: Moody’s P-2, A1 – A3; S&P A-2, A+ – A-; Fitch F2, A+ – A- and
equivalent;
— Lower medium grade: Moody’s P-3, Baa1 – Baa3, S&P A-3, BBB+ – BBB-; Fitch F3, BBB+ – BBB-
and equivalent;
— Non-investment grade: Moody’s not prime, Ba1 – C; S&P B, C, D, BB+ – D; Fitch B, C, D, BB+ –
D and equivalent.
The EU uses these rating categories as a reference point for financial instruments and commercial banks.
However, the EU may keep amounts in a particular risk category even if a rating agency has downgraded
the counterparty, after making its own analysis of individual cases.
The loans in the non-investment grade are mainly financial assistance loans to partner countries in
financial difficulties. All loans to Member States are in investment grade and in Stage 1. The loans in
Stage 2 include mainly the MFA, MFA+, Ukraine Facility and Euratom loans to Ukraine. The POCI loans
are subrogated loans from the ELM programmes.
Borrowing and lending activities for NGEU and financial assistance
In case of default by debtors, the Commission may draw on the assets held in the CPF to service any
related debt due, specifically for MFA and Euratom loans to third countries (except MFA+).
Loans provided to Ukraine under the exceptional MFA programme (EUR 6 billion disbursed in 2022) are
firstly covered by their compartment in the CPF, and then also by additional EUR 3.7 billion of Member
States’ guarantees, that are considered as credit enhancement for those loans and thus reduce an
impairment allowance recognised in relation to those loans to EUR 337 million (out of the entire
Annual accounts of the European Union 2024
125
impairment allowance of EUR 10.1 billion covering the total MFA and MFA+ loans to Ukraine) as at
31 December 2024.
The Commission manages exposure to credit risk for Euratom loans by obtaining state guarantees, which
total EUR 300 million on 31 December 2024 (2023: EUR 314 million).
Loans provided to Member States under the SURE instrument are underpinned by a system of voluntary
guarantees from Member States, amounting to 25% of the maximum ceiling available for the related
financial assistance.
For any credit losses on the loans to Member States, MFA+ and Ukraine Facility the Commission may call
upon Member States, while respecting the own resources ceilings (‘the budgetary headroom’;
see note 6.7).
Loans: Movement in impairment loss allowance
EUR million
Stage 1 Stage 2 Stage 3 POCI Total
Loss allowance at 01.01.2024 54 9 024 23 (18) 9 083
Transfer to Stage 1 23 (23) – – –
Transfer to Stage 2 (0) 0 – – –
Transfer to Stage 3 – – – – –
New loans 14 5 694 – – 5 708
Derecognitions - repayments (1) (25) (8) – (34)
Derecognitions - write offs – – – (12) (12)
Loss allowance remeasurement (59) 1 299 (1) 6 1 245
Other 0 0 0 – 0
Loss allowance at 31.12.2024 31 15 969 14 (24) 15 991
The additional impairment loss allowance on Stage 2 loans is mainly due to new loans to Ukraine
disbursed under the Ukraine Facility (see note 2.4.1.1).
In 2024, the EU granted EUR 763 million of interest rate subsidies to Ukraine for interest accrued on
some of the exceptional MFA loans and MFA+ loans. The amortised cost before modification was
EUR 17.3 billion. This modification of the contractual terms was accounted for as a modification loss in
the statement of financial performance (see note 3.15). The interest rate subsidy did not have
a significant impact on the credit risk assessment, and the loans continued to be classified as Stage 2 as
at 31 December 2024.
Please refer to note 1.5.5 for the EU staging policies for loans.
Loans: ECL measurement
The EU uses a probability-weighted estimation to measure expected credit losses. This involves
estimating the difference between contractual cash flows and expected cash flows.
The EU uses three credit risk parameters for this estimation:
— Probability of default (PD): This is a percentage that represents the likelihood of a counterparty
defaulting on its financial obligation, either over the next 12 months or over the remaining
lifetime of the obligation.
— Loss given default (LGD): This is a percentage that shows the expected cash shortfall, taking into
account recoveries and collaterals.
— Exposure at default (EAD): This is the outstanding exposure (amount) at the time of a default.
The EU takes into account its de facto preferred creditor status when estimating the LGD on sovereign
exposures.
The estimated cash flows over the expected life of the financial asset are discounted at the effective
interest rate.
Annual accounts of the European Union 2024
126
The EU considers reasonable and justified forward-looking information, available without undue cost and
effort, and adjusts the model parameters when necessary.
Cash and cash equivalents: credit quality
EUR million
31.12.2024 31.12.2023
Credit rating
Premium and high grade 57 251 35 687
Upper medium grade 4 161 3 114
Lower medium grade 1 722 786
Non-investment grade 28 28
Gross carrying amount 63 163 39 616
Minus loss allowance - –
Net carrying amount 63 163 39 616
Treasury
Most of the Commission's treasury resources are kept on own resource accounts opened by Member
States for the payment of their own resource’s contributions, mainly GNI, VAT and TOR. These accounts
are held with Member States' treasuries or national central banks, which carry the lowest credit (or
counterparty) risk for the Commission.
For the part of the Commission's treasury resources kept with commercial banks, replenishment of these
accounts is made on a just-in-time basis and is automatically managed by the treasury cash
management system. Minimum cash levels are kept on each commercial account, ensuring that the total
amount kept overnight on these commercial accounts remains constantly at low levels (overall less than
EUR 100 million on average).
Specific guidelines are applied for the selection of commercial banks to further minimise counterparty risk
to which the Commission is exposed. These guidelines include:
— Selecting commercial banks through calls for tender, with a minimum long-term credit rating of
S&P A- or equivalent.
— Monitoring ratings and defining a maximum exposure on each financial institution, taking into
account the creditworthiness and capitalisation of the financial sector entity.
— Holding imprest accounts with local banks selected by a simplified tendering procedure in
delegations outside the EU, with rating requirements depending on the local situation. To limit
risk exposure, balances on imprest accounts are kept at the lowest possible levels, regularly
replenished, and the applied ceilings are reviewed on a yearly basis.
Cash held under unified funding
Under the unified funding approach, sufficient cash is held to meet all upcoming disbursement needs and
maintain a defined safety buffer, while avoiding any excess balances. The cash is placed on a bank
account at the ECB, thus the credit risk is very low.
Annual accounts of the European Union 2024
127
Receivables: credit quality
EUR million
Not due Past due Past due Past due Past due Total
0-30 days 31-90 days
91 days -
1 year
> 1 year
Gross carrying amount 1 508 15 33 27 207 1 789
Minus loss allowance (5) (2) (3) (13) (115) (138)
Net carrying amount at
31.12.2024
1 502 13 30 14 92 1 652
Gross carrying amount 1 819 23 10 40 304 2 195
Minus loss allowance (2) (2) (4) (12) (140) (159)
Net carrying amount at
31.12.2023
1 817 21 6 28 164 2 036
The amounts in this table do not include deferred charges and the FGC receivable leg measured at FVSD (see note 2.6.2), as they are
not subject to the impairment requirements.
Financial assets at FVSD – debt securities: credit quality
Common Provisioning Fund
The weighted average credit rating of the CPF portfolio is A (S&P or equivalent).
Provisionally cashed fines: BUFI portfolio
The weighted average credit rating of the portfolio is A (S&P or equivalent).
Financial guarantees received
The risk management policy applied for the acceptance of financial guarantees ensures a high credit
quality for the Commission. This policy includes:
— Defining a maximum credit exposure based on a financial sector entity's credit rating and capital
level, as reported in its IFRS financial statements.
— Regularly reviewing the compliance of outstanding guarantees with the policy requirements.
ECSC i.L.
The weighted average credit rating of the portfolio is A- (S&P or equivalent).
Financial assets at FVSD – derivatives: credit quality
The EU's derivative assets mainly relate to guarantees on equity portfolios. The credit risk is limited to
counterparty risk. The guarantee on equity will be settled mainly with the EIB Group, which has a rating
of AAA, reducing the credit risk.
The sole counterparty for all outstanding currency forwards as of 31 December 2024 is the Banque de
France. As a result, no credit enhancements, such as collateral or guarantees, are needed.
Financial guarantee contracts: credit quality
EUR million
31.12.2024 31.12.2023
Stage 1 Stage 2 Total Stage 1 Stage 2 Total
Long-term rating
Prime and high grade 1 – 1 2 – 2
Upper medium grade 5 – 5 5 0 5
Lower medium grade 137 – 137 29 – 29
Non-investment grade 34 912 25 746 60 658 30 310 26 697 57 007
Managed on collective
basis / not rated
10 47 56 13 10 23
Total 35 064 25 793 60 857 30 360 26 707 57 066
Annual accounts of the European Union 2024
128
Financial guarantee contracts: Movement in the loss allowance
EUR million
Stage 1 Stage 2 Total
Loss allowance at 01.01.2024 1 430 2 397 3 826
Transfer to Stage 2 (54) 54 –
Transfer to Stage 1 8 (8) –
Additions 292 34 326
Release of guarantees (26) (4) (30)
Remeasurement 280 (398) (117)
Loss allowance at 31.12.2024 1 930 2 075 4 005
Financial guarantee liability carrying
amount at 31.12.2024
4 109 2 271 6 379
*
Transfers from and to stage 1 / stage 2 are measured at the opening balance impairment allowance, whereas the changes of the
amount arising from the change of the stage (i.e. measuremet at 12-months or lifetime ECL) are part of re-measurement.
The increase of the loss allowance for guarantees in Stage 1 in 2024 was mainly due to new operations
signed under the InvestEU and NDICI guarantees (see note 4.1.1).
Out of the outstanding ECL for guarantees in Stage 2 of EUR 2.1 billion as at 31 December 2024,
EUR 1.7 billion relates to the ELM guarantees (see note 4.1.1). This includes EUR 0.9 billion lifetime ECL
for the EIB exposure in Ukraine (EUR 3.7 billion outstanding EIB loans to counterparts in Ukraine)
guaranteed by the EU. The reduction of the ECL for guarantees in Stage 2 mainly relates to the
remeasurement of the ECL for ELM guaranteed portfolio due to its amortisation, as well as change in
estimates.
Please refer to the note 1.5.12 for the EU staging policies for financial guarantee contracts.
Budgetary guarantees
The EU is mainly exposed to credit risk through the operations it guarantees. When the credit quality of
the underlying operations deteriorates, default events become more likely and calls on EU guarantees
may also increase.
To monitor and manage this risk, the Commission relies on a Credit Risk Model that assesses potential
losses. The model uses inputs from implementing partners and combines them with expert judgment to
derive a risk assessment that is coherent with the transaction and relevant economic circumstances.
6.7. LIQUIDITY RISK
Maturity analysis of non-derivative financial liabilities by remaining contractual maturity
EUR million
Undiscounted contractual cash-flows
Carrying
amount
< 1 year 1-5 years > 5 years Total
Borrowings (61 589) (201 152) (468 669) (731 410) (594 028)
Payables (55 414) – – (55 414) (55 414)
Other (168) (560) (850) (1 578) (1 398)
Total at 31.12.2024 (117 171) (201 711) (469 519) (788 401) (650 839)
Borrowings (24 526) (147 211) (367 296) (539 033) (450 561)
Payables (50 516) – – (50 516) (50 516)
Other (195) (661) (867) (1 723) (1 496)
Total at 31.12.2023 (75 237) (147 872) (368 164) (591 272) (502 572)
Annual accounts of the European Union 2024
129
Maturity analysis of derivative financial liabilities by remaining contractual maturity
EUR million
Undiscounted contractual cash-flows Carrying
amount
< 1 year 1-5 years > 5 years Total
Derivative pay leg (1 779) (7) (4) (1 790)
Derivative receive leg 1 691 – – 1 691
Net cash flows at 31.12.2024 (88) (7) (4) (99) (98)
Derivative pay leg (1 203) (6) – (1 209)
Derivative receive leg 1 186 – – 1 186
Net cash flows at 31.12.2023 (17) (6) – (23) (21)
Maturity analysis of financial guarantee contracts issued by earliest period in which the guarantee could
be called
EUR million
Maximum amount of guarantee Carrying
amount
< 1 year 1-5 years > 5 years Total
FGCs at 31.12.2024 (64 115) (2 211) (10 271) (76 597) (6 379)
FGCs at 31.12.2023 (65 661) (2 995) (7 043) (75 699) (6 268)
Maturity analysis of undrawn loan commitment
EUR
million
Maximum amount of undrawn loan commitment
Carrying
amount
< 1
year
1-5
years
> 5
years
Total
Undrawn loan commitments at 31.12.2024 18 152 41 – 18 193 7 082
Undrawn loan commitments at 31.12.2023 20 20 – 40 1
Borrowing activities for NGEU and financial assistance
The EU's first recourse for repaying borrowings for financial assistance and NGEU is the timely collection
of related financial assistance and NGEU loan repayments. However, additional safeguards are in place in
case of payment defaults or payment delays by borrowers.
The Commission has established a short-term temporary measure called budgetary cover, which provides
liquidity to cover payment of obligations arising from back-to-back financial assistance programmes.
For MFA and Euratom loans to third countries, the Guarantee Fund for external actions compartment of
the CPF provides a liquidity reserve. This reserve is used to repay related borrowings, but only after
recourse to third-party guarantors for Euratom (see note 6.6).
If the available assets in the reserve are insufficient to cover actual losses, the Commission will activate
measures to provide additional resources, such as temporary use of Commission's treasury liquidity,
temporary transfers, or additional expenditure from the EU budget.
Loans provided to Ukraine under the exceptional MFA programme are covered by their compartment in
CPF, as well as by additional Member States guarantees (see note 2.4.1.1).
For loans disbursed and borrowings issued under the unified funding approach, the Commission may
apply active cash management and short-term borrowing to service EU debts. Management of liquidity
risk under this approach requires implementation of liquidity management procedures and dedicated
tools to monitor and manage liquidity on a daily basis.
The Commission may also call resources from Member States up to the own resources ceiling to service
EU debts. The own resources decision fixes the ceiling for own resources to cover annual appropriations
for payments at 1.40% of Member States' Gross National Income (GNI), plus an additional temporary
increase of 0.6 percentage points exclusively for NGEU. The 2024 budget included a total of own
resources of 0.79% of EU GNI to finance the expenditure. This means that on 31 December 2024 there
existed an available margin of 1.21% to cover its liabilities.
Finally, loans provided to Member States under the SURE instrument are underpinned by a system of
voluntary guarantees from Member States, amounting to 25% of the maximum ceiling available for the
Annual accounts of the European Union 2024
130
related financial assistance. Before calling on these guarantees, the Commission is expected to examine
the scope for drawing on the margin available under the own resources ceiling for payment
appropriations.
The undrawn loan commitments as at 31 Decemeber 2024 mainly relate to the MFA loan under ULCM for
EUR 18.1 billion (see note 2.4.1.1). This loan will be disbursed in 2025 and financed by borrowings.
Treasury
The EU's budget principles ensure that overall cash resources for a given year are always sufficient for
the execution of all payments.
The total Member States’ contributions together with miscellaneous revenue equal the amount of
payment appropriations for the budgetary year. However, Member States' contributions are received in
12 monthly instalments throughout the year, based on the adopted budget, while payments are subject
to operational needs.
Member States' contributions relating to amending budgets approved in a given month (N) only become
available on the first working day of the month N+1 or N+2, while the related payment appropriations
are immediately available.
To ensure that available treasury resources are always sufficient to cover payments to be executed in any
given month, procedures regarding regular cash forecasting are in place. Own resources or additional
funding can be called up in advance from Member States if needed, up to certain limits and under
conditions foreseen in the Council Regulation (EU, Euratom) No 609/2014.
In addition to these procedures, automated cash management tools ensure that sufficient liquidity is
available on each of the Commission's bank accounts, as part of the Commission's daily treasury
operations.
Fines
The BUFI fund is managed to maintain a sufficient level of liquidity and mobilisation to meet short-term
commitments. The portfolio is composed of mostly highly liquid securities that can be easily sold to meet
cash outflows. The share of cash, cash equivalents and securities maturing within 1 year is
approximately 61%.
Budgetary guarantees
The EU's maturity analysis for financial guarantees uses a prudent approach, allocating the maximum
guarantee amount to the earliest period in which the guarantee could be called. However, the probability
of the EU being called for the entire amount in the first period is remote, and the expected loss is often
lower than the guarantee ceiling. Therefore, the liquidity risk needs to be considered in conjunction with
the carrying amount of the guarantee liabilities.
A key objective of the risk management framework is to ensure that the EU budget can honour its
obligations without disrupting the normal implementation of the budget. This includes mitigating the
liquidity risk related to budgetary guarantees, which is the risk of insufficient funds to fulfil payment
obligations in a timely manner.
To address this risk, each budgetary guarantee is backed by sufficient provisioning paid into the CPF to
ensure timely payment of guarantee calls. The EU regularly monitors the adequacy of the provisioning
rate for each budgetary guarantee programme and reports annually on whether the amounts are
sufficient to cover the risk for the next five years with a defined level of certainty.
In addition, the EU has safeguard procedures in place, including temporary transfers between CPF
compartments and the use of central treasury liquidity, to ensure sufficient liquidity is available when
needed.
Common Provisioning Fund
The CPF is managed to ensure that its assets have a sufficient degree of liquidity and mobilisation to
meet short-term commitments. The portfolio is composed of liquid assets that can be easily sold to meet
Annual accounts of the European Union 2024
131
cash outflows if needed. Approximately 12% of the portfolio is made up of cash, cash equivalents, and
securities maturing within 1 year.
The settlement of derivative contracts is gross and based on their contractual maturity. If necessary,
obligations are honoured by selling USD-denominated assets or through a swap transaction, which may
result in a cash outflow due to foreign exchange differences.
Annual accounts of the European Union 2024
132
7. RELATED PARTY DISCLOSURES
7.1. RELATED PARTIES
The related parties of the EU are the EU consolidated entities, associates 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.
7.2. KEY MANAGEMENT ENTITLEMENTS
For the purposes of presenting information on related party transactions concerning the key management
personnel of the EU, such persons are shown here under five categories:
Category 1: the Presidents of the European Council, the Commission and the Court of Justice of the
European Union
Category 2: the Vice-president of the Commission and High Representative of the EU for Foreign Affairs
and Security Policy and the other Vice-presidents of the Commission
Category 3: the Secretary-General of the Council, the Members of the Commission, the Judges and
Advocates General of the Court of Justice of the European Union, the President and Members of the
General Court, the Ombudsman and the European Data Protection Supervisor
Category 4: the President and Members of the European Court of Auditors
Category 5: the highest-ranking civil servants of the Institutions and Agencies
A summary of their entitlements is given below – further information can be found in the Staff
Regulations published on the Europa website which is the official document describing the rights and
obligations of all officials of the EU. Key management personnel have not received any preferential loans
from the EU.
Annual accounts of the European Union 2024
133
KEY MANAGEMENT FINANCIAL ENTITLEMENTS
EUR
Entitlement (per employee) Category 1 Category 2 Category 3 Category 4 Category 5
Basic salary (per month) 34 419.66
31 177.23 -
32 424.31
24 941.78 -
28 059.50
26 937.12 -
28 683.05
15 859.33 -
24 941.78
Residential/Expatriation allowance 15% 15% 15% 15% 0-4%-16%
Family allowances:
Household (% salary) 2% + 231.51 2% + 231.51 2% + 231.51 2% + 231.51 2% + 231.51
Dependent child 505.87 505.87 505.87 505.87 505.87
Pre-school 123.59 123.59 123.59 123.59 123.59
Education, or 343.24 343.24 343.24 343.24 343.24
Education outside place of work 686.48 686.48 686.48 686.48 686.48
Presiding judges allowance N/A N/A 799.35 N/A N/A
Representation allowance 1 865.24 1 198.77 799.35 N/A N/A
Annual travel costs N/A N/A N/A N/A Reimbursed
Transfers to Member State:
Education allowance* Yes Yes Yes Yes Yes
% of salary* 5% 5% 5% 5% 5%
% of salary with no cc max 25% max 25% max 25% max 25% max 25%
Representation expenses Reimbursed Reimbursed Reimbursed N/A N/A
Taking up duty:
Installation expenses 68 839.32
62 354.46 -
64 848.62
49 883.56 -
56 119.00
53 874.24 -
57 366.10
Reimbursed
Family travel expenses Reimbursed Reimbursed Reimbursed Reimbursed Reimbursed
Moving expenses Reimbursed Reimbursed Reimbursed Reimbursed Reimbursed
Leaving office:
Resettlement expenses 34 419.66
31 177.23 -
32 424.31
24 941.78 -
28 059.50
26 937.12 -
28 683.05
Reimbursed
Family travel expenses Reimbursed Reimbursed Reimbursed Reimbursed Reimbursed
Moving expenses Reimbursed Reimbursed Reimbursed Reimbursed Reimbursed
Transition (% salary)** 40% - 65% 40% - 65% 40% - 65% 40% - 65% N/A
Sickness insurance Covered Covered Covered Covered Covered
Pension (% salary, before tax) Max 70% Max 70% Max 70% Max 70% Max 70%
Deductions:
Community tax 8% - 45% 8% - 45% 8% - 45% 8% - 45% 8% - 45%
Sickness insurance (% salary) 1.7% 1.7% 1.7% 1.7% 1.7%
Special levy on salary 7% 7% 7% 7% 6-7%
Pension deduction N/A N/A N/A N/A 12.10%
Number of persons at year-end 3 8 93 27 112
* with correction coefficient (‘cc’) applied
** paid for the first 3 years following departure
Annual accounts of the European Union 2024
134
8. EVENTS AFTER THE BALANCE SHEET DATE
At the date of signature of these accounts no 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. The accounts and related notes were prepared using the most recently available information and
this is reflected in the information presented.
Annual accounts of the European Union 2024
135
9. SCOPE OF CONSOLIDATION
A. CONTROLLED ENTITIES (54)
1. Institutions and consultative bodies (11)
Council of the European Union European Data Protection Supervisor
Court of Justice of the European Union European Economic and Social Committee
European Commission European External Action Service
European Committee of the Regions European Ombudsman
European Council European Parliament
European Court of Auditors
2. EU Agencies AND Other Bodies (41)
2.1. Executive Agencies (6)
European Climate, Infrastructure and Environment
Executive Agency (CINEA)
European Innovation Council and SMEs Executive
Agency (EISMEA)
European Education and Culture Executive Agency
(EACEA)
European Research Council Executive Agency
(ERCEA)
European Health and Digital Executive Agency (HaDEA) European Research Executive Agency (REA)
2.2. Decentralised Agencies and Other Bodies (35)
Agency for Support for the Body of European Regulators
for Electronic Communications (BEREC Office)
European Public Prosecutor's Office (EPPO)
Community Plant Variety Office (CPVO) European Securities and Markets Authority (ESMA)
European Agency for Safety and Health at Work (EU-
OSHA)
European Training Foundation (ETF)
European Banking Authority (EBA) European Union Agency for Asylum (EUAA)
European Border and Coast Guard Agency (FRONTEX)
European Union Agency for Criminal Justice
Cooperation (Eurojust)
European Centre for Disease Prevention and Control
(ECDC)
European Union Agency for Cybersecurity (ENISA)
European Centre for the Development of Vocational
Training (CEDEFOP)
European Union Agency for Fundamental Rights
(FRA)
European Chemicals Agency (ECHA)
European Union Agency for Law Enforcement
Cooperation (EUROPOL)
European Environment Agency (EEA)
European Union Agency for Law Enforcement
Training (CEPOL)
European Fisheries Control Agency (EFCA) European Union Agency for Railways (ERA)
European Food Safety Authority (EFSA)
European Union Agency for the Cooperation of
Energy Regulators (ACER)
European Foundation for the Improvement of Living and
Working Conditions (Eurofound)
European Union Agency for the Operational
Management of Large-Scale IT Systems in the Area
of Freedom, Security and Justice (eu-LISA)
European Institute for Gender Equality (EIGE)
European Union Agency for the Space Programme
(EUSPA)
European Insurance and Occupational Pensions Authority
(EIOPA)
European Union Aviation Safety Agency (EASA)
European Joint Undertaking for ITER and the
Development of Fusion Energy (Fusion for Energy)
European Union Drugs Agency (EUDA)
European Labour Authority (ELA) European Union Intellectual Property Office (EUIPO)
European Maritime Safety Agency (EMSA)
Translation Centre for the Bodies of the European
Union (CdT)
European Medicines Agency (EMA)
3. Other controlled entities (2)
European Coal and Steel Community in Liquidation (ECSC
i.L.)
European Institute of Innovation and Technology
(EIT)
B. ASSOCIATES (1)
European Investment Fund (EIF)
Annual accounts of the European Union 2024
136
MINOR ENTITIES
The entities listed below have not been consolidated using the equity method in the 2024 EU consolidated
financial statements on the basis of immateriality:
MINOR ENTITES (11)
Chips Joint Undertaking (Chip JU)
Circular Bio-based Europe Joint Undertaking (CBE JU)
Clean Aviation Joint Undertaking (CAJU)
Clean Hydrogen Joint Undertaking (Clean H2 JU)
Europe’s Rail Joint Undertaking (EU-RAIL JU)
European Cybersecurity Competence Centre (ECCC)
European High Performance Computing Joint Undertaking (EuroHPC JU)
Global Health EDCTP3 Joint Undertaking (GHED JU)
Innovative Health Initiative Joint Undertaking (IHI JU)
Single European Sky ATM Research 3 Joint Undertaking (SESAR 3 JU)
Smart Networks and Services Joint Undertaking (SNS JU)
The annual accounts of the above entities are publicly available on their respective websites.
Annual accounts of the European Union 2024
137
BUDGETARY IMPLEMENTATION REPORTS
AND EXPLANATORY NOTES
It should be noted that due to the rounding of figures into millions of euros, some financial data in the
tables below may appear not to add-up.
Annual accounts of the European Union 2024
138
CONTENTS
EU BUDGET RESULT .............................................................................. 139
STATEMENTS OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ............. 140
NOTES TO THE BUDGETARY IMPLEMENTATION REPORTS ............................ 142
3.1. THE EU BUDGET FRAMEWORK........................................................... 142
3.2. MULTIANNUAL FINANCIAL FRAMEWORK 2021-2027.............................. 142
3.3. MFF DETAILED HEADINGS (PROGRAMMES) ......................................... 145
3.4. NextGenerationEU ........................................................................... 145
3.5. ANNUAL BUDGET ............................................................................ 146
3.6. REVENUE ....................................................................................... 148
3.7. CALCULATION OF THE BUDGET RESULT.............................................. 149
3.8. RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .......... 151
IMPLEMENTATION OF THE 2024 EU BUDGET ............................................. 153
IMPLEMENTATION OF EU BUDGET REVENUE.............................................. 154
5.1. SUMMARY OF THE IMPLEMENTATION OF EU BUDGET REVENUE .............. 154
IMPLEMENTATION OF EU BUDGET EXPENDITURE ....................................... 155
6.1. MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT
APPROPRIATIONS............................................................................ 155
6.2. MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS.................. 156
6.3. MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ........................ 157
6.4. MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) ................... 158
6.5. MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN...................... 159
6.6. MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE............. 160
6.7. DETAILED MFF: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT
APPROPRIATIONS............................................................................ 161
6.8. DETAILED MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ... 168
6.9. DETAILED MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ......... 175
6.10. DETAILED MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) . 182
6.11. DETAILED MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN .... 188
6.12. DETAILED MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE
193
IMPLEMENTATION OF THE BUDGET BY INSTITUTION .................................. 199
7.1. IMPLEMENTATION OF BUDGET REVENUE ............................................ 199
7.2. IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ......................... 200
7.3. IMPLEMENTATION OF PAYMENT APPROPRIATIONS................................ 201
IMPLEMENTATION OF THE AGENCIES' BUDGETS ........................................ 202
8.1. BUDGET REVENUE........................................................................... 202
8.2. COMMITMENT AND PAYMENT APPROPRIATIONS BY AGENCY .................. 203
Annual accounts of the European Union 2024
139
EU BUDGET RESULT
EUR million
Note 2024 2023
a Revenue for the financial year 250 609 248 361
b Payments against current year appropriations (244 309) (236 739)
c Payment appropriations carried over to year N+1 (3 848) (3 014)
d Cancellation of unused appropriations carried over from year N-1 334 4
e Evolution of assigned revenue (B)-(A) (1 486) (8 055)
Unused appropriations at the end of current year (A) 24 692 23 207
Unused appropriations at the end of previous year (B) 23 206 15 152
f Exchange rate differences for the year 44 78
g Budget result 1 345 635
The budget result of the EU is returned to the Member States in the following year through deduction
against their amounts due for that year. It is calculated in accordance with Article 1 (1) of Council
Regulation (EU, Euratom) No 608/2014 laying down implementing measures for the system of own
resources. More information can be found under section 3.7 Calculation of the budget result.
a. Revenue for the financial year: table 5.1 “Summary of the implementation of EU Budget
Revenue”, column 8 “Total Revenue”.
b. Payments against current year appropriations: table 6.3 “MFF – Implementation of Payment
appropriations”, column 2 “Payments made from adopted budget and column 4 “Payments made
from assigned revenue”.
c. Payment appropriations carried over to year N+1: table 6.3 “MFF – Implementation of Payment
appropriations”, column 7 automatic carry-overs plus column 8 carry-over by decision.
d. Cancellation of unused payment appropriations carried over from year N-1: takes into account
the amount of payment appropriations carried over (automatically and on decision) at the end of
previous year and the current year’s “Payments made from carryovers” as in column 3 of table
6.3 “MFF – Implementation of Payment appropriations”.
e. Evolution of the total assigned revenue appropriations at year-end: calculates the difference of
the amount of assigned revenue appropriations at the end of previous year (plus) and the
amount of assigned revenue appropriations at the end of the current year (as in column 8 of
table 6.3 “MFF – Implementation of Payment appropriations” - minus) to obtain the net variation
of assigned revenue in the current year.
f. Exchange rate differences include realised and non-realised exchange rate differences.
Annual accounts of the European Union 2024
140
STATEMENTS OF COMPARISON OF BUDGET AND
ACTUAL AMOUNTS
Budget revenue
EUR million
Initial
budget
adopted
Final
adopted
budget
Entitlements
established
Revenue
1 Own resources 136 499 141 170 141 082 141 047
11 - Sugar levies 0 0 (0) –
12 - Customs duties 24 620 20 119 20 102 20 066
13 - VAT 23 616 23 463 23 438 23 438
14 - GNI 81 169 90 449 90 334 90 334
16 - Reduction of GNI-based contribution granted to
certain Member States
– – 23 23
17 - Plastic packaging waste 7 094 7 140 7 185 7 185
2 Surpluses, balances and adjustments 0 633 669 669
3 Administrative revenue 2 124 2 124 3 942 3 897
4 Financial revenue, default interest and fines 149 3 478 17 926 4 774
5 Budgetary guarantees, borrowing-and-lending operations 0 0 73 376 73 332
6
Revenue, contributions and refunds related to union
policies
3 858 2 340 29 884 26 890
Total 142 630 149 744 266 879 250 609
of which Next Generation EU (NGEU) – – 73 536 73 535
Budget expenditure: commitments by multiannual financial
framework (MFF) heading
EUR million
MFF Heading
Initial
adopted
budget
Final
adopted
budget
Total
appropriations
available
Commitments
made
1 Single Market, Innovation and Digital 21 493 21 492 29 209 25 962
2 Cohesion, Resilience and Values 74 561 74 583 86 683 84 193
2a. Economic, social and territorial cohesion 64 665 64 665 72 701 71 416
2b. Resilience and values 9 895 9 917 13 982 12 778
3 Natural Resources and Environment 57 339 57 307 59 874 57 964
of which: Market related expenditure and direct
payments
40 517 40 517 41 745 40 810
4 Migration and Border Management 3 893 3 893 4 232 4 039
5 Security and Defence 2 321 2 699 2 778 2 770
6 Neighbourhood and the World 16 230 17 303 19 569 18 283
7 European Public Administration 11 988 12 057 14 502 13 351
of which: Administrative expenditure of the
institutions
4 955 4 956 5 470 5 291
O Outside MFF – 4 768 8 941 5 552
S
Solidarity mechanisms within and outside the Union
(Special instruments)
1 561 1 178 1 899 1 546
Total 189 385 195 279 227 687 213 661
of which Next Generation EU (NGEU) – – 721 490
Annual accounts of the European Union 2024
141
Budget expenditure: payments by multiannual financial
framework (MFF) heading
EUR million
MFF Heading
Initial
adopted
budget
Final
adopted
budget
Total
appropriations
available
Payments
made
1 Single Market, Innovation and Digital 20 828 20 900 32 504 25 864
2 Cohesion, Resilience and Values 33 716 35 980 121 796 116 525
2a. Economic, social and territorial cohesion 24 156 26 493 54 441 51 949
2b. Resilience and values 9 560 9 487 67 355 64 576
3 Natural Resources and Environment 54 151 56 110 67 233 64 448
of which: Market related expenditure and direct
payments
40 505 40 474 41 702 40 762
4 Migration and Border Management 3 249 3 261 3 727 3 405
5 Security and Defence 2 035 2 084 2 142 2 123
6 Neighbourhood and the World 15 291 14 454 16 241 15 395
7 European Public Administration 11 988 12 057 15 516 13 266
of which: Administrative expenditure of the
institutions
4 955 4 956 6 091 5 224
O Outside MFF – 3 755 14 261 3 987
S
Solidarity mechanisms within and outside the Union
(Special instruments)
1 371 1 144 2 347 1 975
Total 142 630 149 744 275 769 246 988
of which Next Generation EU (NGEU) – – 76 628 73 080
Budget expenditure: outstanding commitments by
multiannual financial (MFF) heading
EUR million
MFF Heading
Outstanding
commitments
carried-over
from 2023
Liquidation
of
outstanding
commitm.
carried from
2023
New
outstanding
commitments
from 2024
Total
outstanding
commit-
ments
1 2 3 4=1+2+3
1 Single Market, Innovation and Digital 51 926 (18 682) 17 920 51 164
2 Cohesion, Resilience and Values 376 757 (103 313) 70 644 344 088
2a. Economic, social and territorial cohesion 154 864 (48 569) 67 875 174 170
2b. Resilience and values 221 893 (54 744) 2 769 169 918
3 Natural Resources and Environment 57 477 (23 526) 16 916 50 867
of which: Market related expenditure and direct
payments
358 (137) 150 371
4 Migration and Border Management 5 121 (2 130) 2 763 5 754
5 Security and Defence 3 803 (1 383) 2 025 4 445
6 Neighbourhood and the World 39 987 (11 212) 13 321 42 097
7 European Public Administration 1 004 (1 004) 1 011 1 011
of which: Administrative expenditure of the
institutions
608 (608) 623 623
O Outside MFF 6 447 (375) 1 827 7 899
S
Solidarity mechanisms within and outside the Union
(Special instruments)
482 (429) 0 53
Total 543 003 (162 054) 126 428 507 378
of which Next Generation EU (NGEU) 238 611 (68 834) (3 481) 166 296
of which excluding Next Generation EU (NGEU) 304 393 (93 220) 129 909 341 081
Annual accounts of the European Union 2024
142
NOTES TO THE BUDGETARY IMPLEMENTATION
REPORTS
3.1. THE EU BUDGET FRAMEWORK
The budgetary accounts are kept in accordance with the Financial Regulation (FR). The general budget is
the instrument which provides for and authorises the Union's revenue and expenditure every year, within
the ceilings and other provisions laid down in the MFF in line with the legislative acts concerning
multiannual programmes adopted under that framework.
3.2. MULTIANNUAL FINANCIAL FRAMEWORK 2021-2027
EUR million in current prices
2021 2022 2023 2024 2025 2026 2027 Total
1. Single Market,
Innovation and
Digital
20 919 21 878 21 727 21 598 21 596 21 230 20 991 149 939
2. Cohesion,
Resilience and
Values
6 364 67 806 70 137 73 289 75 697 66 404 70 128 429 825
2a. Economic, social
and territorial
cohesion
1 769 61 345 62 939 64 683 66 361 56 593 58 484 372 174
2b. Resilience and
Values 4 595 6 461 7 198 8 606 9 336 9 811 11 644 57 651
3. Natural Resources
and Environment 56 841 56 965 57 295 57 449 57 336 57 100 57 316 400 302
Of which: Market
related expenditure
and direct payments
40 368 40 639 40 693 40 603 40 529 40 542 40 496 283 870
4. Migration and
Border Management 1 791 3 360 3 814 4 020 4 871 4 858 5 619 28 333
5. Security and
Defence 1 696 1 896 1 946 2 380 2 617 2 810 3 080 16 425
6. Neighbourhood
and the World 16 247 16 802 16 329 16 331 16 303 15 614 16 071 113 697
7. European Public
Administration 10 635 11 058 11 419 11 773 12 124 12 506 12 959 82 474
Of which:
Administrative
expenditure of the
institutions
8 216 8 528 8 772 9 006 9 219 9 464 9 786 62 991
TOTAL
COMMITMENT
APPROPRIATIONS
114 493 179 765 182 667 186 840 190 544 180 522 186 164 1 220 995
TOTAL PAYMENT
APPROPRIATIONS
163 496 166 534 162 053 170 543 175 378 180 586 184 198 1 202 788
as a percentage of
GNI
1.18% 1.12% 0.99% 0.96% 0.95% 0.95% 0.93% 1.01%
Council Regulation (EU, Euratom) 2020/2093 laying down the 2021-2027 MFF was adopted on 17
December 202045
. The above table shows the MFF ceilings at current prices as adopted in the technical
adjustment for the MFF 2021-2027 for 202546
, in accordance with the fixed annual deflator of 2% set out
45
Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework
for the years 2021 to 2027, OJ L 433I, 22.12.2020, p. 11.
46
Technical adjustment of the financial framework for 2025 in accordance with Article 4 of Council Regulation (EU,
Euratom) 2021/365 laying down the multiannual financial framework for the years 2021 to 2027, COM(2024) 320
final, 18.6.2024.
Annual accounts of the European Union 2024
143
in Article 4 (2) of the MFF Regulation. As stipulated in the Council Regulation (EU, Euratom) 2020/2093
laying down the 2021-2027 MFF, for commitment appropriations the amounts are split per Heading; for
payment appropriations the ceilings only apply at total level. 2024 was the fouth financial year covered
by the MFF 2021-2027.
Following the political agreement on the Mid-term revision of the 2021-2027 MFF reached in the
European Council of 1 February and with the European Parliament on 6 February 2024, the revised MFF
Regulation47
was adopted on 29 February. The mid-term revision reinforced the EU budget for the period
2024-2027 by EUR 64.6 billion, of which EUR 33 billion in loans, in a number of priority areas including
support to Ukraine, the setting-up of the strategic technologies for Europe platform (STEP), the creation
of the mechanism to cover additional costs to fund the Next Generation EU recovery instrument, arising
from higher interest rates as well as the additional funding for migration management and international
partnerships, and the reinforcement of some special instruments. The Solidarity and Emergency Aid
Reserve (SEAR) is split as of 1 January 2024 into two separate instruments (the European Solidarity
Reserve and the Emergency Aid Reserve). To integrate the impact of the Mid-term revision on the Annual
Budget for 2024, Amending Budget 1/2024 was adopted48
.
The overall ceiling for commitment appropriations for 2024 was EUR 186 840 million, whilst the
corresponding ceiling for payment appropriations was EUR 170 543 million.
Pursuant to Article 312 (3) TFEU, the MFF determines the amounts of the annual ceilings for commitment
appropriations by category of expenditure (‘headings’) and of the annual ceilings for payment
appropriations. MFF headings correspond to the Union’s major sectors of activity. An explanation of the
various headings of the 2021-2027 MFF is given below.
The MFF 2021-2027 amounts to EUR 1 221 billion (EUR 1 081 billion in 2018 prices), including the
European Development Fund (EDF). In addition, NextGenerationEU provides an additional amount of EUR
806.9 billion (EUR 750 billion in 2018 prices) up to 2023 in commitments and 2026 in payments. This
initial amount has been adjusted to EUR 712 billion, as the total available loan support was not fully
requested by the Member States.
For the annual budget procedure, the budget nomenclature is further structured by policy ‘clusters’,
providing further clarity on how individual spending programmes contribute to the Union’s policy goals.
Heading 1 – Single Market, Innovation and Digital
This heading includes key EU programmes supporting the areas of research and innovation, digital
transformation, strategic infrastructure, strengthening the single market and strategic space projects.
Programmes under this heading include Horizon Europe, the InvestEU Fund, Connecting Europe Facility,
the Single market programme and the European space programme.
Programmes receiving contributions from NGEU (external assigned revenue) under this heading: Horizon
Europe and InvestEU Fund.
Heading 2 – Sustainable growth: natural resources
This heading is divided in two sub-headings: Economic, social and territorial cohesion (2a), and Resilience
and values (2b).
Spending under this heading aims at strengthening the resilience and cohesion between the EU Member
States. The funding helps reduce disparities in and between EU regions, and within and across Member
States, and promotes sustainable territorial development (European Regional Development Fund,
Cohesion Fund, European Social Fund Plus). It also supports the Union’s solidarity and cooperation in
preparedness and response to disasters (Union Civil Protection Mechanism and RescEU). In addition,
programmes under this heading seek to make the EU more resilient to present and future challenges by
investing in the green and digital transition, young people (Erasmus), health (EU4Health) and action to
protect EU values (Justice, Rights and Values) and promote cultural diversity (Creative Europe).
This heading includes the RRF, powered by the vast majority of the funding provided by NGEU over the
period 2021-2023. Other programmes receiving contributions from NGEU (external assigned revenue)
47
as last amended by Council Regulation (EU, Euratom) No 2024/765 of 29 February 2024, OJ L series, 2024/765,
29.2.2024, p.1.
48
AB 1/2024, OJ L, 2024/1430, 5.6.2024.
Annual accounts of the European Union 2024
144
under this heading: REACT-EU, Union Civil Protection Mechanism (RescEU). For a more detailed overview
of the RRF activities, consult sections on the NGEU 2 and 3 of the Financial Highlights of the Year.
Heading 3 – Natural Resources and Environment
Expenditure under this heading invests in sustainable agriculture (common agricultural policy) and
fisheries and maritime policy (European Maritime, Fisheries and Aquaculture Fund), as well programmes
dedicated to environmental protection and climate action (LIFE programme, Just Transition Fund).
Programmes receiving contributions from NGEU (external assigned revenue) under this heading: rural
development, Just Transition Fund.
Heading 4 – Migration and Border Management
The programmes (Asylum, Migration and Integration Fund, Integrated Border Management Fund) and the
decentralised agencies (such as the European Border and Coast Guard Agency (Frontex) and the
European Union Agency for Asylum) financed under this heading seek to tackle the challenges linked to
migration and the management of the EU’s external borders and to the safeguarding of the asylum
system within the EU.
Heading 5 – Security and Defence
This heading reflects the increased need for cooperation at Union level to address security threats and
increase its strategic autonomy. It includes programmes whose role is to improve the security and safety
of Europe’s citizens (Internal Security Fund), to strengthen Europe’s defence capacities (European
Defence Fund), and to provide the tools needed to respond to internal and external security challenges.
Heading 6 – Neighbourhood and the World
Programmes under this heading reinforce the EU socio-economic impact in its neighbourhood, in
developing countries and the rest of the world. The new NDICI- Global Europe instrument merges several
former EU external financing instruments, including cooperation with African, Caribbean and Pacific (ACP)
countries previously financed by the European Development Fund. The heading also includes assistance
for countries preparing for accession to the EU (Pre-accession assistance) and the Union’s Humanitarian
Aid programme.
Heading 7 - European Public Administration
This heading covers administrative expenditure for all institutions, pensions and the European Schools.
S - Special instruments
Flexibility mechanisms in the EU budget enable the EU to mobilise the necessary funds to react to
unforeseen events such as crisis, natural disasters and emergency situations. Their scope, financial
allocation and operating modalities are provided for in the MFF Regulation and the Inter Institutional
Agreement. They ensure that budgetary resources can respond to evolving priorities, so that every euro
is used where it is most needed.
In the annual budgetary nomenclature and implementation, they are identified as special instruments
(‘S’), as they can be mobilised over and above the MFF expenditure ceilings, both for commitment and
payment appropriations.
Annual accounts of the European Union 2024
145
3.3. MFF DETAILED HEADINGS (PROGRAMMES)
The headings of the MFF are further broken down into detailed headings, corresponding to the main
spending programmes (e.g. Horizon 2020, Erasmus+ etc.). Underlying legal bases for budget
implementation are adopted at this programme level. Programmes are the commonly used structure for
reporting on implementation and results. Tables by programme are shown in the budgetary
implementation reports (see tables 6.7 - 6.12 below).
3.4. NextGenerationEU
With a budget of EUR 420.8 billion for the non-repayable support, NGEU has a major impact on the total
EU annual budgets 2021 through to 2026 and on their implementation. In 2021, this amount has been
fully inscribed as assigned revenue appropriations. All commitments for the non-repayable support were
entered by 31 December 2023 and will be honoured by payments by 31 December 2026, in accordance
with the Articles 3 (4) and 3 (9) of the EURI Regulation49
.
For a comprehensive overview of the NGEU activities, consult sections 2 and 3 of the Financial Highlights
of the Year.
49
Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union Recovery Instrument to
support the recovery in the aftermath of the COVID-19 crisis.
Annual accounts of the European Union 2024
146
3.5. ANNUAL BUDGET
The budget adoption procedure is laid down in Article 314 of the Treaty on the Functioning of the EU. The
following diagram presents the deadlines as well as the steps of the budget adoption.
1) In practice, the three institutions endeavour to present their respective documents earlier in the
year in order to smooth the process.
2) The Conciliation Committee is composed of the members of the Council or their representatives
and an equal number of members representing the European Parliament. The Commission takes
part in the Conciliation Committee’s proceedings and takes all the necessary initiatives to
reconcile the positions of the European Parliament and the Council.
3) The European Parliament approves the joint text and then, within 14 days of the Council’s
rejection, decides (by a majority of its component members and 3/5 of the votes cast) to confirm
all or some of its amendments.
The budget structure for the Commission consists of administrative and operational appropriations. The
other Institutions have only administrative appropriations. Furthermore, the budget distinguishes
between two types of appropriations: non-differentiated and differentiated. Non-differentiated
appropriations are used to finance operations of an annual nature (which comply with the principle of
annuality). Differentiated appropriations are used in order to reconcile the principle of annuality with the
need to manage multiannual operations. Differentiated appropriations are split into commitment and
payment appropriations:
Treaty timetable1
1 September Draft Budget (DB) Commission
1 October Council’s position on the DB Council
European Parliament’s position on Council’s position Parliament
13 November
(42 days)
EP approves
Majority of votes cast
or takes no decision
EP adopts amendments
Majority of component
members
▼ ▼
Budget adopted ◀
Committee accepts
Parliament’s
amendments within 10
days
◀ Conciliation Committee
is convened2
▼
13 November
to 4 December
(21 days)
Conciliation Committee agrees to a Joint Text Conciliation Committee
YES
within 14 days
NO
within 14 days
▼ ▼
18 December
(14 days)
Parliament and Council
approve (or fail to
decide)
——— OR ———
Council rejects,
Parliament has final
word3
Council approves,
Parliament rejects
——— OR ———
Council and Parliament
reject
▶
Draft Budget rejected
Commission submits a
new DB
▼
Budget adopted
Annual accounts of the European Union 2024
147
— commitment appropriations: cover the total cost of the legal obligations, entered into for the
current financial year, for operations extending over a number of years. However, budgetary
commitments for actions extending over more than one financial year may be broken down over
several years, into annual instalments, where the basic act so provides.
— payment appropriations: cover expenditure arising from commitments entered into in the current
financial year and/or earlier financial years.
In the accounts, the types of funding are grouped into two main items:
— Final adopted budget appropriations; and
— Additional appropriations containing:
– Carry-overs from previous year (the Financial Regulation allows, for a limited number of
cases, to carry unspent amounts from the previous year into the current year); and
– Assigned revenue arising from reimbursements, contributions from third parties/countries to
EU programmes and work performed for third parties; these are assigned directly to the
corresponding expenditure budget lines and constitute the third pillar of funding.
All funding types together form the available appropriations.
Annual accounts of the European Union 2024
148
3.6. REVENUE
3.6.1. Own resources revenue
The vast majority of revenue comes from own resources, which consist of the following categories:
(1) Traditional own resources (TOR): accounted for around 14% of own resources revenue in 2024.
(2) Value added tax (VAT) based resource: accounted for around 17% of own resources revenue in
2024.
(3) Resource based on plastic packaging waste that is not recycled: accounted for around 5% of own
resources revenue in 2024.
(4) Gross national income (GNI) based resource: accounted for around 64% of own resources
revenue in 2024.
Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the
EU (Own Resources Decision 2020) specifies the categories of own resources and lays down the methods
for their calculation. This decision entered into force on 1 June 2021 and was applied retroactively from
1 January 2021.
The Own Resources Decision 2020 stipulates that the total amount of own resources allocated to the
Union to cover annual appropriations for payments shall not exceed 1.40% of the sum of all the Member
States’ GNIs. In addition, the decision empowers the Commission on an exceptional basis to borrow
temporarily up to EUR 750 billion in 2018 prices on the capital markets on behalf of the Union to address
the consequences of the COVID-19 pandemic through the recovery instrument NextGenerationEU. The
own resources ceiling for appropriations for payments will be increased temporarily by 0.6 percentage
points to cover all liabilities resulting from this borrowing.
As from 2021, ‘other revenue’ of the EU budget includes the financial contributions from the United
Kingdom resulting from the financial settlement under the UK Withdrawal Agreement.
3.6.2. Traditional own resources (TOR)
TOR consist of customs duties levied on imports from third countries, which are collected by Member
States on behalf of the EU. However, Member States retain 25% to cover their collection costs. All
established TOR amounts must be entered in one of the following accounts kept by the competent
authorities:
In the ordinary accounts provided for in Article 6(3) of Council Regulation (EU, Euratom) No 609/2014:
all amounts recovered or guaranteed.
In the separate accounts provided for in the same Article: all amounts not yet recovered and/or not
guaranteed; amounts guaranteed but challenged may also be entered in this account.
Member States must book TOR to the Commission’s account via their treasury or national central bank no
later than the first working day after the 19th day of the second month following the month in which the
entitlement was established (or recovered in the case of the separate account).
3.6.3. Value added tax (VAT)
The VAT own resource is calculated based on Member States’ VAT bases, which are harmonised for this
purpose in accordance with EU rules. A uniform call rate of 0.30% applies to each Member State’s total
amount of VAT receipts collected for all taxable supplies divided by the weighted average VAT rate. The
VAT base is capped at 50% of each Member State’s GNI.
3.6.4. Non-recycled plastic packaging waste
Annual accounts of the European Union 2024
149
A uniform call rate of EUR 0.80 per kilogram applies to the weight of plastic packaging waste generated
in each Member State that is not recycled. The plastic packaging waste that is not recycled in a given
year is calculated as the difference between the plastic packaging waste generated and the plastic
packaging waste recycled in that year in a Member State. Bulgaria, Czechia, Estonia, Greece, Spain,
Croatia, Italy, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Portugal, Romania, Slovenia and
Slovakia are entitled to specific annual lump sum reductions in their respective plastics own resource
contributions.
3.6.5. Gross national income (GNI)
The resource based on gross national income (GNI) is used to finance that part of the budget that is not
covered by other revenue sources. A uniform call rate is levied on each Member State’s GNI, which is
established in accordance with EU rules.
3.6.6. Gross reduction
For the period 2021-2027, the following Member States benefit from a gross reduction in their annual
GNI-based contributions; EUR 565 million for Austria, EUR 377 million for Denmark, EUR 3 671 million for
Germany, EUR 1 921 million for the Netherlands and EUR 1 069 million for Sweden. These gross
reductions are measured in 2020 prices and financed by all Member States.
3.6.7. Adjustments to own resources of previous financial years
VAT and GNI-based resources are determined on the basis of forecasts of the relevant bases made when
the draft budget is prepared. These forecasts are subsequently revised and updated during the budget
year concerned, by means of an amending budget. Differences between the amounts due by the Member
States with reference to the actual bases, and the amounts actually paid on the basis of the (revised)
forecasts, either positive or negative, are called by the Commission from the Member States for the first
working day of March of the third year following the budget year concerned. Corrections may still be
made to the actual VAT and GNI bases during the subsequent four years, unless a reservation is issued.
These reservations represent potential claims on the Member States for uncertain amounts, as their
financial impact cannot be accurately estimated. When the exact amount can be determined, the
corresponding VAT and GNI-based resources are called either in connection with the VAT and GNI
balances exercise or by individual calls for funds.The forecast of the plastics-based own resource is
adjusted in a similar way. However, the differences between the amounts due by the Member States
according to their annual statements with the outturn data, and the amounts actually paid on the basis of
the (revised) forecasts, either positive or negative, are called by the Commission from the Member States
for the first working day of June of the third year following the budget year concerned. Corrections may
still be made to the actual bases during the subsequent five years, unless a reservation is issued.
3.7. CALCULATION OF THE BUDGET RESULT
The budget result of the EU is returned to the Member States during the following year through deduction
of their amounts due for that year.
The amounts of own resources entered in the accounts are those credited during the course of the year
to the accounts opened in the Commission's name by the governments of the Member States. Revenue
comprises also, in the case of a surplus, the budget result for the previous financial year. The other
revenue entered in the accounts is the amount actually received during the course of the year.
For the purposes of calculating the budget result for the year, expenditure comprises payments made
against the year's appropriations plus any of the appropriations for that year that are carried over to the
following year. Payments made against the year's appropriations means payments that are made by the
Accounting Officer by 31 December of the financial year. For the EAGF, payments are those effected by
the Member States between 16 October N-1 and 15 October N, provided that the Accounting Officer was
notified of the commitment and authorisation by 31 January N+1. EAGF expenditure may be subject to a
conformity decision following controls in the Member States.
Annual accounts of the European Union 2024
150
In accordance with Article 1(1) of Regulation No 608/2014 laying down implementing measures for the
system of own resources, the budget result represents the difference between:
– total revenue received for the financial year; and
– total payments made against current year's appropriations plus the total amount of that year's
appropriations carried over to the following year.
The following are added to or deducted from the resulting figure:
– the net balance of cancellations of payment appropriations carried over from previous years and
any payments which, because of fluctuations in the euro rate, exceed non-differentiated
appropriations carried over from the previous year;
– the evolution of assigned revenue; and
– the net exchange rate gains or losses recorded during the year.
Appropriations carried over from the previous financial year in respect of contributions by and work for
third parties, which by definition never lapse, are included as additional appropriations for the financial
year. This explains the difference between carryovers from the previous year in the year N budget
implementation reports and those carried over to the following year in the year N-1 budget
implementation reports. Commitment appropriations made available again following the repayment of
payments on account are disregarded when calculating the budget result.
Payment appropriations carried over include automatic carry-overs and carry-overs by decision. The
cancellation of unused payment appropriations carried over from the previous year comprises the
cancellations of appropriations carried over automatically and by decision.
Annual accounts of the European Union 2024
151
3.8. RECONCILIATION OF ECONOMIC RESULT WITH
BUDGET RESULT
EUR million
2024 2023
ECONOMIC RESULT OF THE YEAR (97 208) (71 437)
Revenue
Entitlements established in current year but not yet collected (6 773) (5 714)
Entitlements established in previous years and collected in current year 9 925 10 046
Entitlements collected not to be treated as revenue in the economic result 83 953 73 209
Accrued revenue (net) (723) (923)
86 382 76 618
Expenses
Accrued expenses (net) 10 599 14 090
Expenses prior year paid in current year (2 220) (1 638)
Net-effect pre-financing (11 678) (12 575)
Payment appropriations carried over to next year (4 031) (3 208)
Payments made from carry-overs & cancellation of unused payment
appropriations
1 711 (5 409)
Movement in provisions 9 948 3 752
Other 7 757 240
12 086 (4 748)
Economic result Agencies and ECSC i.L. 85 202
BUDGET RESULT OF THE YEAR 1 344 635
In accordance with the Financial Regulation, the economic result of the year is calculated on the basis of
accrual accounting principles and the EU Accounting Rules, while the budget result is based on modified
cash accounting rules. As the economic result and the budget result cover the same underlying
transactions – the exception being the other (non-budgetary) sources of revenue and expenditure of the
agencies and the ECSC i.L. which are included in the economic result only – the reconciliation of the
economic result of the year with the budget result of the year serves as a useful consistency check.
Reconciling items – Revenue
The actual budgetary revenue for a financial year corresponds to the revenue collected from entitlements
established in the course of the year and amounts collected from entitlements established in previous
years. Therefore the entitlements established in the current year but not yet collected are to be deducted
from the economic result for reconciliation purposes as they do not form part of budgetary revenue. On
the contrary the entitlements established in previous years and collected in current year must be added
to the economic result for reconciliation purposes. Some entitlements collected are not to be treated as
revenue in the economic result and must also be added for reconciliation purposes. They are mostly
related to Next Generation EU financing.
The accrued revenue mainly consists of amounts related to financial corrections, own resources, interests
and dividends. Only the net effect, i.e. accrued revenue for current year minus reversal accrued revenue
from previous year, is taken into consideration.
Reconciling items – Expenditure
The accrued expenses mainly consists of accruals made for year-end cut-off purposes, i.e. eligible
expenses incurred by beneficiaries of EU funds but not yet reported to the Commission. Only the net-
effect, i.e. accrued expenses for current year minus the reversal of accrued expenses from the previous
year, is taken into consideration. Payments made in the current year relating to invoices registered in
prior years are part of current year's budgetary expenditure and therefore must be added to the
economic result for reconciliation purposes.
The net effect of pre-financing is the combination of (1) the new pre-financing amounts paid in the
current year and recognised as budgetary expenditure of the year and (2) the clearing of the pre-
Annual accounts of the European Union 2024
152
financing through eligible costs accepted during the current year. The latter represent an expense in
accrual terms but not in the budgetary accounts since the payment of the initial pre-financing had
already been considered as a budgetary expenditure at the time of its payment.
As well as the payments made against the year's appropriations, the appropriations for that year that are
carried forward to the next year also need to be taken into account in calculating the budget result for
the year (in accordance with Article 1(1) of Regulation (EU, Euratom) No 608/2014). The same applies
for the budgetary payments made in the current year from carry-overs from previous years, and the
cancellation of unused payment appropriations.
The movement in provisions relates to year-end estimates made in the financial statements (employee
benefits mainly) that do not impact the budgetary accounts. Other reconciling amounts comprise different
elements such as asset amortisation/depreciation, asset acquisitions, capital lease payments and financial
participations for which the budgetary and accrual accounting treatments differ.
Reconciling item – Economic result Agencies and ECSC i.L.
The budget result of the year is a non-consolidated figure and does not include the other (non-budgetary)
sources of revenue and expenditure of the consolidated agencies and the ECSC i.L. (see note 6). To
reconcile the economic result of the year – a consolidated figure which includes these amounts – with the
budgetary result of the year, the whole consolidated economic result of the year of the agencies and the
ECSC i.L. is presented as a reconciling item.
Annual accounts of the European Union 2024
153
IMPLEMENTATION OF THE 2024 EU BUDGET
Please see section 6, “Summary of budget implementation" in the Financial Highlights of the Year for
explanatory notes on the 2024 budget implementation for revenue and expenditure, outstanding
commitments and budget result.
Annual accounts of the European Union 2024
154
IMPLEMENTATION OF EU BUDGET REVENUE
5.1. SUMMARY OF THE IMPLEMENTATION OF EU BUDGET REVENUE
EUR million
Income appropriations Entitlements established Revenue
Receipts
as % of
budget
Out-
standing
Title
Initial
adopted
budget
Final
adopted
budget
Current
year
Carried
over
Total
On entitle-
ments of
current year
On entitle-
ments
carried over
Total
1 2 3 4 5=3+4 6 7 8=6+7 9=8/2 10=5-8
1 Own resources 136 499 141 170 141 280 (197) 141 082 141 202 (155) 141 047 100 % 36
11 - Sugar levies 0 0 – (0) (0) – – – - (0)
12 - Customs duties 24 620 20 119 20 299 (197) 20 102 20 222 (155) 20 066 100 % 36
13 - VAT 23 616 23 463 23 438 – 23 438 23 438 – 23 438 100 % –
14 - GNI 81 169 90 449 90 334 – 90 334 90 334 – 90 334 100 % –
16 - Reduction of GNI-based contribution
granted to certain Member States
– – 23 – 23 23 – 23 - –
17 - Plastic packaging waste 7 094 7 140 7 185 – 7 185 7 185 – 7 185 101 % –
2 Surpluses, balances and adjustments 0 633 662 7 669 662 7 669 106 % –
3 Administrative revenue 2 124 2 124 3 906 36 3 942 3 877 20 3 897 183 % 45
4 Financial revenue, default interest and fines 149 3 478 3 245 14 681 17 926 (739) 5 513 4 774 137 % 13 152
5
Budgetary guarantees, borrowing-and-lending
operations
0 0 73 376 – 73 376 73 332 – 73 332 - 44
6
Revenue, contributions and refunds related to
union policies
3 858 2 340 25 115 4 769 29 884 22 345 4 545 26 890 1 149 % 2 994
Total 142 630 149 744 247 584 19 295 266 879 240 680 9 929 250 609 167 % 16 270
Annual accounts of the European Union 2024
155
IMPLEMENTATION OF EU BUDGET EXPENDITURE
6.1. MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT APPROPRIATIONS
EUR million
Commitment appropriations Payment appropriations
MFF Heading Budget appropriations
Additional
appropriations
Total
approp.
available
Budget appropriations
Additional
appropriations
Total
approp.
available
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assigned
revenue
Initial
adopted
budget
Amending
budgets
&
transfers
Final
adopted
budget
Carry-
overs
Assigned
revenue
1 2 3=1+2 4 5
6=3+
4+5
7 8 9=7+8 10 11
12=9+
10+11
1
Single Market, Innovation and
Digital
21 493 (1) 21 492 95 7 621 29 209 20 828 72 20 900 109 11 495 32 504
2 Cohesion, Resilience and Values 74 561 22 74 583 12 12 088 86 683 33 716 2 264 35 980 813 85 003 121 796
2a. Economic, social and territorial
cohesion
64 665 – 64 665 12 8 023 72 701 24 156 2 337 26 493 1 27 947 54 441
2b. Resilience and values 9 895 22 9 917 0 4 065 13 982 9 560 (73) 9 487 812 57 056 67 355
3 Natural Resources and Environment 57 339 (32) 57 307 316 2 252 59 874 54 151 1 959 56 110 324 10 799 67 233
of which: Market-related
expenditure and direct payments
40 517 (0) 40 517 316 912 41 745 40 505 (32) 40 474 316 912 41 702
4 Migration and Border Management 3 893 1 3 893 – 338 4 232 3 249 12 3 261 3 463 3 727
5 Security and Defence 2 321 378 2 699 – 79 2 778 2 035 48 2 084 8 51 2 142
6 Neighbourhood and the World 16 230 1 073 17 303 483 1 783 19 569 15 291 (838) 14 454 161 1 626 16 241
7 European Public Administration 11 988 69 12 057 1 2 445 14 502 11 988 69 12 057 1 004 2 456 15 516
of which: Administrative
expenditure of the institutions
4 955 1 4 956 1 513 5 470 4 955 1 4 956 613 522 6 091
O Outside MFF – 4 768 4 768 – 4 174 8 941 – 3 755 3 755 – 10 506 14 261
S
Solidarity mechanisms within and
outside the Union (Special
instruments)
1 561 (383) 1 178 407 314 1 899 1 371 (227) 1 144 728 475 2 347
Total 189 385 5 894 195 279 1 314 31 094 227 687 142 630 7 114 149 744 3 150 122 875 275 769
Annual accounts of the European Union 2024
156
6.2. MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS
EUR million
Total
appropr.
available
Commitments made
Appropriations carried over to
2025
Appropriations lapsing
MFF Heading
from final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from final
adopted
budget
from
assigned
revenue
Total
from
final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total
1 2 3 4
5=2+3
+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
1
Single Market, Innovation
and Digital
29 209 21 489 95 4 378 25 962 89 % 0 3 243 3 244 3 – 0 3
2
Cohesion, Resilience and
Values
86 683 73 513 12 10 668 84 193 97 % 0 1 335 1 335 1 070 – 85 1 155
2a. Economic, social and
territorial cohesion
72 701 63 596 12 7 808 71 416 98 % – 131 131 1 070 – 85 1 154
2b. Resilience and values 13 982 9 917 0 2 860 12 778 91 % 0 1 204 1 204 0 – 0 1
3
Natural Resources and
Environment
59 874 57 243 – 721 57 964 97 % 366 1 296 1 663 13 – 234 247
of which: Market-related
expenditure and direct
payments
41 745 40 465 – 345 40 810 98 % 366 567 933 2 – – 2
4
Migration and Border
Management
4 232 3 892 – 147 4 039 95 % – 191 191 1 – 0 1
5 Security and Defence 2 778 2 699 – 71 2 770
100
%
– 8 8 0 – 0 0
6
Neighbourhood and the
World
19 569 16 646 421 1 217 18 283 93 % 657 566 1 224 0 62 0 62
7
European Public
Administration
14 502 12 003 1 1 348 13 351 92 % – 1 097 1 097 54 – 0 54
of which: Administrative
expenditure of the
institutions
5 470 4 911 1 379 5 291 97 % 134 134 45 – 0 45
O Outside MFF 8 941 4 737 – 815 5 552 62 % 30 3 359 3 389 0 – – 0
S
Solidarity mechanisms
within and outside the
Union (Special instruments)
1 899 842 407 297 1 546 81 % 310 7 318 25 – 10 35
Total 227 687 193 064 937 19 661 213 661 94 % 1 365 11 103 12 468 1 166 62 330 1 558
Annual accounts of the European Union 2024
157
6.3. MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS
EUR million
Total
appropr.
available
Payments made
Appropriations carried over
to 2025
Appropriations lapsing
MFF Heading
from final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from final
adopted
budget
from
assigned
revenue
Total
from final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total
1 2 3 4
5=2+
3+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
1
Single Market, Innovation and
Digital
32 504 20 778 98 4 988 25 864 80 % 113 6 504 6 617 9 11 3 23
2 Cohesion, Resilience and Values 121 796 34 082 811 81 633 116 525 96 % 1 898 3 368 5 266 0 2 2 5
2a. Economic, social and
territorial cohesion
54 441 26 490 1 25 458 51 949 95 % 2 2 489 2 491 0 1 0 1
2b. Resilience and values 67 355 7 591 810 56 175 64 576 96 % 1 896 879 2 775 0 2 2 4
3
Natural Resources and
Environment
67 233 56 043 8 8 398 64 448 96 % 376 2 401 2 777 7 0 0 8
of which: Market-related
expenditure and direct payments
41 702 40 416 0 345 40 762 98 % 367 567 934 6 0 – 6
4
Migration and Border
Management
3 727 3 231 2 171 3 405 91 % 28 292 320 2 0 0 2
5 Security and Defence 2 142 2 073 7 42 2 123 99 % 6 8 14 5 1 0 5
6 Neighbourhood and the World 16 241 14 346 153 897 15 395 95 % 107 729 836 1 9 0 10
7 European Public Administration 15 516 11 114 926 1 226 13 266 85 % 889 1 229 2 118 54 78 1 133
of which: Administrative
expenditure of the institutions
6 091 4 329 557 338 5 224 86 % 582 183 766 45 55 1 100
O Outside MFF 14 261 3 634 – 353 3 987 28 % 121 10 154 10 274 (0) – – (0)
S
Solidarity mechanisms within
and outside the Union (Special
instruments)
2 347 834 675 466 1 975 84 % 310 7 318 0 53 2 55
Total 275 769 146 134 2 680 98 175 246 988 90 % 3 848 24 692 28 540 78 154 8 240
Annual accounts of the European Union 2024
158
6.4. MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL)
EUR million
Commitments outstanding at the end of previous year Commitments of the current year
Total
commitm.
outstanding
at the end of
the year
MFF Heading
Commitm.
carried
forward from
previous year
Decommitm./
Revaluations/
Cancellations
Payments
Commitm.
outstanding
at year-end
Commitm.
made during
the year
Payments
Cancellation
of commitm.
which
cannot be
carried over
Commitm.
outstanding
at year-end
1 2 3 4=1+2+3 5 6 7 8=5+6+7 9=4+8
1 Single Market, Innovation and Digital 51 926 (853) (17 829) 33 244 25 962 (8 035) (7) 17 920 51 164
2 Cohesion, Resilience and Values 376 757 (336) (102 977) 273 444 84 193 (13 548) (1) 70 644 344 088
2a. Economic, social and territorial
cohesion
154 864 (161) (48 409) 106 295 71 416 (3 540) (1) 67 875 174 170
2b. Resilience and values 221 893 (176) (54 568) 167 149 12 778 (10 008) (0) 2 769 169 918
3 Natural Resources and Environment 57 477 (125) (23 401) 33 950 57 964 (41 048) (0) 16 916 50 867
of which: Market-related
expenditure and direct payments
358 (35) (102) 221 40 810 (40 660) – 150 371
4 Migration and Border Management 5 121 (1) (2 129) 2 991 4 039 (1 276) (0) 2 763 5 754
5 Security and Defence 3 803 (4) (1 378) 2 420 2 770 (744) (0) 2 025 4 445
6 Neighbourhood and the World 39 987 (779) (10 433) 28 776 18 283 (4 962) (0) 13 321 42 097
7 European Public Administration 1 004 (76) (927) 0 13 351 (12 339) (2) 1 011 1 011
of which: Administrative expenditure
of the institutions
608 (51) (557) – 5 291 (4 668) (1) 623 623
O Outside MFF 6 447 (114) (261) 6 072 5 552 (3 726) (0) 1 827 7 899
S
Solidarity mechanisms within and
outside the Union (Special instruments)
482 (0) (429) 53 1 546 (1 546) – 0 53
Total 543 003 (2 288) (159 765) 380 950 213 661 (87 223) (10) 126 428 507 378
Annual accounts of the European Union 2024
159
6.5. MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN
EUR million
<2018 2018 2019 2020 2021 2022 2023 2024 Total
1 Single Market, Innovation and Digital 957 639 2 663 4 496 4 309 7 314 11 086 19 700 51 164
2 Cohesion, Resilience and Values 1 587 273 588 1 478 3 357 42 094 54 161 240 550 344 088
3 Natural Resources and Environment 136 201 178 222 372 3 544 663 45 551 50 867
4 Migration and Border Management 40 3 18 421 139 313 1 580 3 241 5 754
5 Security and Defence 18 46 74 188 506 612 909 2 094 4 445
6 Neighbourhood and the World 1 336 1 149 1 651 1 948 4 056 8 352 9 878 13 726 42 097
7 European Public Administration – – – – – 0 0 1 011 1 011
O Outside MFF – – – – 65 2 586 3 421 1 827 7 899
S
Solidarity mechanisms within and outside the Union
(Special instruments)
– – – – – – 53 0 53
Total 4 074 2 312 5 172 8 752 12 804 64 814 81 750 327 700 507 378
As a result from re-allocation of commitments in the framework of the migration to a new accounting system (SUMMA) a shift of outstanding amount (201 274 EUR million)
between years has occurred. The overall amount of outstanding commitments remains unchanged.
Annual accounts of the European Union 2024
160
6.6. MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE
EUR million
From budget appropriations From assigned revenue appropriations Total
commitm.
outstanding
at the end
of 2024
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
1 2 3 4
5=1+2+3-
4
6 7 8 9
10=6+7+8
-9
11=5+10
1 Single Market, Innovation and Digital 43 318 (629) 21 584 20 969 43 304 8 608 (230) 4 378 4 895 7 860 51 164
2 Cohesion, Resilience and Values 129 392 825 73 525 31 113 172 629 247 365 (1 163) 10 668 85 412 171 459 344 088
2a. Economic, social and territorial
cohesion
123 345 982 63 608 22 751 165 184 31 520 (1 144) 7 808 29 198 8 986 174 170
2b. Resilience and values 6 048 (157) 9 917 8 363 7 445 215 846 (19) 2 860 56 214 162 473 169 918
3 Natural Resources and Environment 41 606 109 57 243 56 066 42 891 15 871 (234) 721 8 382 7 976 50 867
of which: Market related expenditure
and direct payments
358 (35) 40 465 40 420 368 0 – 345 342 3 371
4 Migration and Border Management 4 949 24 3 892 3 239 5 627 172 (25) 147 166 127 5 754
5 Security and Defence 3 748 (2) 2 699 2 066 4 379 55 (2) 71 57 66 4 445
6 Neighbourhood and the World 39 345 (701) 17 067 14 618 41 093 642 (78) 1 217 777 1 004 42 097
7 European Public Administration 886 (32) 12 004 11 969 888 118 (46) 1 348 1 297 123 1 011
of which: Administrative
expenditure of the institutions
567 (10) 4 912 4 886 582 42 (42) 379 338 40 623
O Outside MFF – (0) 4 737 3 634 1 103 6 447 (114) 815 353 6 795 7 899
S
Solidarity mechanisms within and
outside the Union (Special instruments)
321 (0) 1 249 1 517 53 161 – 297 458 – 53
Total 263 564 (405) 194 000 145 192 311 967 279 440 (1 893) 19 661 101 797 195 410 507 378
Annual accounts of the European Union 2024
161
6.7. DETAILED MFF: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT
APPROPRIATIONS
EUR million
Commitment appropriations Payment appropriations
Budget appropriations
Additional
appropriations
Total
approp.
available
Budget appropriations
Additional
appropriations
Total
approp.
available
Programme
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assigned
revenue
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assign
ed
revenu
e
1 2 3=1+2 4 5
6=3+
4+5
7 8 9=7+8 10 11
12=9+
10+11
1 Horizon Europe 12 897 1 12 898 95 4 458 17 451 11 833 196 12 028 67 7 104 19 199
Euratom 281 (1) 280 – 58 337 333 40 372 15 107 494
Thermonuclear Experimental Reactor
(ITER)
436 – 436 – 3 440 509 54 563 1 3 568
Other actions – – – – 712 712 – – – – 446 446
Pilot projects and prep. actions 24 – 24 – 0 25 27 (5) 22 – 0 22
InvestEU Fund 348 – 348 – 1 672 2 019 347 (89) 258 1 2 945 3 203
CEF - Transport 1 757 0 1 758 – 48 1 806 2 119 (49) 2 070 1 40 2 112
CEF - Energy 885 (1) 885 – 3 888 741 39 781 2 2 784
CEF - Digital 87 – 87 – 4 91 151 (11) 140 1 4 145
Digital Europe 1 266 (1) 1 265 – 75 1 340 1 150 (115) 1 034 7 71 1 112
Decentralised agencies 213 4 217 – 11 228 213 7 220 – 11 231
Other actions – 1 1 – 170 171 – 1 1 – 170 171
Pilot projects and prep. actions 14 – 14 – – 14 14 6 20 – – 20
Actions under prerogatives of
Commission
24 – 24 – 4 29 21 2 22 – 5 28
Single Market 602 1 604 – 48 651 601 (21) 580 8 68 657
EU Anti-Fraud 26 – 26 – 1 27 23 (1) 22 – 1 22
Taxation 38 – 38 – 1 39 30 4 35 0 1 36
Customs 136 – 136 – 9 144 105 27 132 0 9 141
Decentralised agencies 136 (4) 132 – 15 147 136 (4) 132 – 15 147
Other actions 9 (3) 6 – 1 7 9 (1) 8 – 1 8
Pilot projects and prep. actions 12 – 12 – – 12 11 (4) 7 – – 7
European Space Programme 2 088 (0) 2 088 – 327 2 415 2 183 (4) 2 179 5 489 2 673
Annual accounts of the European Union 2024
162
EUR million
Commitment appropriations Payment appropriations
Budget appropriations
Additional
appropriations
Total
approp.
available
Budget appropriations
Additional
appropriations
Total
approp.
available
Programme
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assigned
revenue
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assign
ed
revenu
e
1 2 3=1+2 4 5
6=3+
4+5
7 8 9=7+8 10 11
12=9+
10+11
Decentralised agencies 78 1 79 – 4 83 78 4 82 – 4 86
Pilot projects & preparatory actions 17 – 17 – – 17 4 (4) – – – –
Union Secure Connectivity 117 – 117 – – 117 190 – 190 0 – 190
Total Heading 1: Single Market,
Innovation and Digital
21 493 (1) 21 492 95 7 621 29 209 20 828 72 20 900 109 11 495 32 504
2 Regional Development (ERDF) * 39 434 (4) 39 431 12 4 932 44 375 13 079 2 825 15 904 0 14 623 30 528
Cohesion Fund 6 842 – 6 842 – 1 127 7 969 2 264 8 2 273 0 1 815 4 088
Cohesion Fund contrib. to CEF-Transport 1 606 – 1 606 – 12 1 618 1 952 286 2 238 – 11 2 248
Pilot projects and prep. actions – 4 4 – 0 4 5 (2) 3 – 0 3
European Social Fund Plus (ESF+) * 16 783 – 16 783 – 1 953 18 736 6 856 (781) 6 075 1 11 498 17 574
Support to Turkish-Cypriot Community 34 – 34 – 8 42 32 5 37 0 7 44
European Recovery and Resilience 123 – 123 – 2 784 2 907 105 (5) 100 2 55 240 55 342
Pericles IV 1 – 1 – 0 1 1 (0) 1 0 0 1
EU Recovery 3 340 – 3 340 – 51 3 391 3 340 – 3 340 651 51 4 042
RescEU 240 – 240 0 27 268 260 0 260 125 476 862
EU4Health 754 (0) 753 – 43 796 689 (146) 544 5 31 580
Emergency support within the Union
(ESI)
– – – – 8 8 2 (2) – – 36 36
Decentralised agencies 249 13 263 – 50 312 245 10 256 – 49 305
Pilot projects and prep. actions – – – – – – – – – – – –
Actions under prerogatives of
Commission
12 0 12 – 0 13 12 0 12 – 0 12
Employment and Social Innovation 94 – 94 – 11 104 85 (3) 82 1 12 95
Erasmus+ 3 796 – 3 796 – 993 4 789 3 522 43 3 565 16 1 051 4 631
European Solidarity Corps (ESC) 144 – 144 – 49 193 139 (7) 131 5 56 192
Creative Europe 335 – 335 – 21 356 366 33 398 4 25 428
Justice 42 – 42 – 1 43 39 9 48 1 1 50
Rights and Values 219 (0) 219 – 3 222 226 (28) 197 1 2 201
Annual accounts of the European Union 2024
163
EUR million
Commitment appropriations Payment appropriations
Budget appropriations
Additional
appropriations
Total
approp.
available
Budget appropriations
Additional
appropriations
Total
approp.
available
Programme
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assigned
revenue
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assign
ed
revenu
e
1 2 3=1+2 4 5
6=3+
4+5
7 8 9=7+8 10 11
12=9+
10+11
Decentralised agencies 295 9 303 – 9 313 286 12 299 – 10 308
Other actions 8 – 8 – 0 8 7 2 9 – 0 9
Pilot projects and prep. actions 26 – 26 – 0 26 39 (8) 30 – 0 31
Actions under prerogatives of
Commission
183 – 183 – 7 190 167 11 178 – 7 185
Total Heading 2: Cohesion, Resilience
and Values
74 561 22 74 583 12 12 088 86 683 33 716 2 264 35 980 813 85 003 121 796
3 Agricultural Guarantees 40 517 (0) 40 517 316 912 41 745 40 505 (32) 40 474 316 912 41 702
Other progr. of Natural Resources and
Environment
0 0 0 0 0 0 0 0 0 0 0 0
Agricultural Fund for Rural Development 13 156 – 13 156 – 420 13 576 11 992 1 774 13 765 0 2 712 16 478
Maritime and Fisheries 1 070 – 1 070 – 154 1 224 781 199 979 1 175 1 155
Fisheries (SFPA and RFMO) 163 (33) 130 – – 130 143 (29) 114 – – 114
Decentralised agencies 30 0 30 – 2 32 30 0 30 – 2 32
Other actions 0 0 0 0 0 0 0 0 0 0 0 0
Pilot projects and prep. actions 9 – 9 – – 9 5 (2) 3 – – 3
Environment and Climate (LIFE) 765 3 768 – 5 773 571 29 600 7 4 612
Just Transition Fund 1 490 – 1 490 – 246 1 736 3 2 5 – 6 465 6 470
Loan facility under Just Transition
Mechanism
50 – 50 – 504 554 35 25 60 – 521 582
Decentralised agencies 68 (2) 66 – 8 74 68 (2) 66 – 8 74
Pilot projects and prep. actions 6 – 6 – – 6 12 (3) 9 – – 9
Specific actions 16 – 16 – – 16 7 (3) 4 – – 4
Total Heading 3: Natural Resources and
Environment
57 339 (32) 57 307 316 2 252 59 874 54 151 1 959 56 110 324 10 799 67 233
4 Asylum, Migration and Integration 1 508 (5) 1 503 – 10 1 513 1 359 1 1 360 2 10 1 372
Decentralised agencies 169 (17) 152 – 18 170 169 (17) 152 – 18 170
Pilot projects and prep. actions 0 0 0 0 0 0 0 0 0 0 0 0
Border Mngmt. (IBMF) - Border mngmt
and visa
1 023 (19) 1 004 – 182 1 186 524 42 565 1 307 873
Annual accounts of the European Union 2024
164
EUR million
Commitment appropriations Payment appropriations
Budget appropriations
Additional
appropriations
Total
approp.
available
Budget appropriations
Additional
appropriations
Total
approp.
available
Programme
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assigned
revenue
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assign
ed
revenu
e
1 2 3=1+2 4 5
6=3+
4+5
7 8 9=7+8 10 11
12=9+
10+11
Border Mngmt. (IBMF) - Customs
equipment
144 – 144 – 0 144 157 (16) 141 0 0 141
Decentralised agencies 1 048 42 1 090 – 128 1 218 1 040 3 1 043 – 128 1 171
Total Heading 4: Migration and Border
Management
3 893 1 3 893 – 338 4 232 3 249 12 3 261 3 463 3 727
5 Internal Security Fund (ISF) 322 1 323 – 2 325 238 (27) 211 2 2 215
Nuclear decommissioning 75 (7) 67 – – 67 152 (10) 142 – – 142
Nuclear Safety and decommissioning 62 (2) 61 – 0 61 72 6 78 1 0 79
Decentralised agencies 251 1 252 – 17 269 251 (3) 249 – 17 266
Pilot projects and prep. actions – – – – – – 1 (0) 1 – – 1
Actions under prerogatives of
Commission
23 9 32 – 0 32 21 15 36 – 0 36
European Defence (Research) 218 125 344 – 12 355 211 (5) 206 1 7 215
European Defence (Non Research) 420 260 680 – 23 703 540 8 547 2 21 570
Military Mobility 251 – 251 – – 251 262 73 335 1 – 335
Defence instrument on common
procurement
260 (10) 250 – 9 259 100 (100) – – – –
Defence Industrial Reinforcement
instrument
343 – 343 – 16 359 79 91 170 1 3 173
European Defence industry Programme 0 0 0 0 0 0 0 0 0 0 0 0
Pilot projects and prep. actions – – – – – – 0 (0) – – 0 0
Union Secure Connectivity 96 – 96 – – 96 110 – 110 – – 110
Total Heading 5: Security and Defence 2 321 378 2 699 – 79 2 778 2 035 48 2 084 8 51 2 142
6
Neighbourhood, Developm. and Intl.
Cooperation
11 524 (10) 11 514 461 966 12 940 10 764 (1 510) 9 254 71 828 10 153
Instrument for Nuclear Safety (EINS) 42 – 42 0 21 63 27 6 33 1 21 55
Humanitarian Aid (HUMA) 1 911 584 2 495 – 26 2 521 1 897 528 2 426 6 26 2 458
Common Foreign and Security Policy
(CFSP)
385 – 385 – 22 406 385 (0) 385 0 12 397
Overseas Countries and Territories
(OCT)
71 – 71 1 35 107 72 (21) 51 8 21 79
Annual accounts of the European Union 2024
165
EUR million
Commitment appropriations Payment appropriations
Budget appropriations
Additional
appropriations
Total
approp.
available
Budget appropriations
Additional
appropriations
Total
approp.
available
Programme
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assigned
revenue
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assign
ed
revenu
e
1 2 3=1+2 4 5
6=3+
4+5
7 8 9=7+8 10 11
12=9+
10+11
MFA+ 5 – 5 – 569 574 5 – 5 – 525 530
Other actions 81 (2) 79 – 1 80 81 (31) 50 – 1 51
Pilot projects and prep. actions – – – – 0 0 – 0 0 – 0 0
Actions under prerogatives of
Commission
95 (0) 95 – 0 95 86 2 88 – 0 88
Pre-Accession Assistance (IPA III) 2 116 – 2 116 21 143 2 281 1 975 163 2 138 75 192 2 405
Facility for Western Balkans – 501 501 – – 501 – 24 24 – – 24
Pilot projects and prep. actions 0 0 0 0 0 0 0 0 0 0 0 0
Total Heading 6: Neighbourhood and the
World
16 230 1 073 17 303 483 1 783 19 569 15 291 (838) 14 454 161 1 626 16 241
7 Staff Pensions 2 515 74 2 589 – 280 2 870 2 515 74 2 589 – 280 2 870
(Pensions former Members) EP 15 0 15 – – 15 15 0 15 – – 15
(Pensions former Members) ECC 1 (0) 1 – – 1 1 (0) 1 – – 1
(Pensions former Members) Commission 10 (1) 9 – – 9 10 (1) 9 – – 9
(Pensions former Members) CJEU 17 (2) 15 – – 15 17 (2) 15 – – 15
(Pensions former Members) ECA 7 (0) 7 – – 7 7 (0) 7 – – 7
(Pensions former Members) Ombudsman 0 (0) 0 – – 0 0 (0) 0 – – 0
(Pensions former Members) EDPS 0 0 0 – – 0 0 0 0 – – 0
European schools 246 – 246 – 29 275 246 – 246 1 29 276
Remuneration statutory staff 2 898 6 2 903 – 124 3 027 2 898 6 2 903 0 124 3 027
Remuneration external staff 288 (23) 265 – 120 386 288 (23) 265 32 121 419
Members - Salaries and allowances 18 0 18 – 0 18 18 0 18 0 0 18
Members - Temporary allowances 1 – 1 – – 1 1 – 1 – – 1
Recruitment costs 32 (1) 31 – 0 31 32 (1) 31 2 0 33
Termination of service 8 (0) 7 – – 7 8 (0) 7 – – 7
Training costs 16 1 17 – 7 25 16 1 17 11 7 35
Social and Mobility 21 2 24 – 30 53 21 2 24 11 30 65
Annual accounts of the European Union 2024
166
EUR million
Commitment appropriations Payment appropriations
Budget appropriations
Additional
appropriations
Total
approp.
available
Budget appropriations
Additional
appropriations
Total
approp.
available
Programme
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assigned
revenue
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assign
ed
revenu
e
1 2 3=1+2 4 5
6=3+
4+5
7 8 9=7+8 10 11
12=9+
10+11
Information and comm. technology 281 6 287 – 227 514 281 6 287 171 228 685
Rents and purchases 312 14 326 – 962 1 287 312 14 326 7 962 1 294
Linked to buildings 133 (26) 107 – 43 150 133 (26) 107 63 43 214
Security 64 10 74 – 13 87 64 10 74 38 13 125
Mission and representation 43 11 54 – 3 57 43 11 54 11 3 69
Meetings, committees, conference 19 (4) 15 – 3 17 19 (4) 15 6 3 24
Official journal 7 (4) 3 – 0 3 7 (4) 3 1 0 4
Publications 10 1 12 – 4 16 10 1 12 6 4 22
Acquisition of information 7 (0) 7 – 1 7 7 (0) 7 2 1 9
Studies and investigations 5 1 6 – 0 6 5 1 6 5 0 10
General equipment, vehicle, furniture 15 1 16 – 8 24 15 1 16 12 8 36
Linguistic external services 29 (1) 27 – 51 79 29 (1) 27 2 51 81
Other administrative expenditure 18 1 19 – 26 45 18 1 19 10 26 55
Pilot projects and prep. actions 0 0 0 0 0 0 0 0 0 0 0 0
Administrative expenditure of Other
Institutions
4 955 1 4 956 1 513 5 470 4 955 1 4 956 613 522 6 091
Total Heading 7: European Public
Administration
11 988 69 12 057 1 2 445 14 502 11 988 69 12 057 1 004 2 456 15 516
O Innovation Fund (IF) – – – – 3 886 3 886 – – – – 10 218 10 218
Ukraine Facility – 4 768 4 768 – 157 4 924 – 3 755 3 755 – 157 3 912
Other actions – – – – 131 131 – – – – 132 132
Total Heading O: Outside MFF – 4 768 4 768 – 4 174 8 941 – 3 755 3 755 – 10 506 14 261
S Solidarity and Emergency Aid (SEAR) 0 0 0 0 0 0 0 0 0 0 0 0
European Solidarity Reserve 1 351 (207) 1 144 400 – 1 544 1 351 (207) 1 144 400 – 1 544
Emergency Aid Reserve – – – – – – – – – – – –
European Globalisation Adjustment
(EGF)
209 (176) 34 – 17 51 20 (20) 0 0 17 18
Brexit Adjustment Reserve – – – 7 297 304 – – – 328 458 786
Annual accounts of the European Union 2024
167
EUR million
Commitment appropriations Payment appropriations
Budget appropriations
Additional
appropriations
Total
approp.
available
Budget appropriations
Additional
appropriations
Total
approp.
available
Programme
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assigned
revenue
Initial
adopted
budget
Amending
budgets &
transfers
Final
adopted
budget
Carry-
overs
Assign
ed
revenu
e
1 2 3=1+2 4 5
6=3+
4+5
7 8 9=7+8 10 11
12=9+
10+11
Total Heading S: Solidarity mechanisms
within and outside the Union (Special
instruments)
1 561 (383) 1 178 407 314 1 899 1 371 (227) 1 144 728 475 2 347
Total 189 385 5 894 195 279 1 314 31 094 227 687 142 630 7 114 149 744 3 150
122
875
275 769
Annual accounts of the European Union 2024
168
6.8. DETAILED MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS
EUR million
Total
appropr.
available
Commitments made
Appropriations carried
over
to 2025
Appropriations lapsing
Programme
from final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total %
from
final
adopted
budget
from
assigne
d
revenue
Total
from
final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total
1 2 3 4
5=2+3
+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
1 Horizon Europe 17 451 12 898 95 2 087 15 081 86 % – 2 370 2 370 0 – (0) 0
Euratom 337 280 – 7 287 85 % – 51 51 0 – 0 0
Thermonuclear Experimental
Reactor (ITER)
440 436 – 1 438 100 % – 2 2 – – – –
Other actions 712 – – 222 222 31 % – 490 490 – – – –
Pilot projects and prep. actions 25 24 – – 24 97 % – 0 0 1 – – 1
InvestEU Fund 2 019 348 – 1 603 1 950 97 % – 69 69 – – 0 0
CEF - Transport 1 806 1 758 – 23 1 780 99 % – 26 26 – – – –
CEF - Energy 888 885 – – 885 100 % – 3 3 – – – –
CEF - Digital 91 87 – 1 88 97 % – 3 3 0 – – 0
Digital Europe 1 340 1 264 – 49 1 313 98 % – 26 26 1 – 0 1
Decentralised agencies 228 217 – 9 227 99 % – 1 1 – – – –
Other actions 171 1 – 69 70 41 % – 101 101 – – 0 0
Pilot projects and prep. actions 14 14 – – 14 100 % – – – 0 – – 0
Actions under prerogatives of
Commission
29 24 – 4 28 99 % – 0 0 – – (0) (0)
Single Market 651 604 – 22 626 96 % – 25 25 0 – 0 0
EU Anti-Fraud 27 24 – 1 25 93 % 0 0 0 1 – 0 1
Taxation 39 38 – 0 39 98 % – 1 1 0 – – 0
Customs 144 136 – 1 137 95 % – 7 7 – – – –
Decentralised agencies 147 132 – 10 142 97 % – 5 5 – – – –
Other actions 7 6 – 0 6 92 % – 1 1 – – – –
Pilot projects and prep. actions 12 12 – – 12 100 % – – – – – – –
European Space Programme 2 415 2 088 – 265 2 353 97 % – 62 62 – – (0) (0)
Decentralised agencies 83 79 – 3 82 99 % – 1 1 – – – –
Annual accounts of the European Union 2024
169
EUR million
Total
appropr.
available
Commitments made
Appropriations carried
over
to 2025
Appropriations lapsing
Programme
from final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total %
from
final
adopted
budget
from
assigne
d
revenue
Total
from
final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total
1 2 3 4
5=2+3
+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Pilot projects & preparatory
actions
17 17 – – 17 100 % – – – – – – –
Union Secure Connectivity 117 117 – – 117 100 % – – – – – – –
Total Heading 1: Single Market,
Innovation and Digital
29 209 21 489 95 4 378 25 962 89 % 0 3 243 3 244 3 – 0 3
2 Regional Development (ERDF) * 44 375 38 656 12 4 798 43 466 98 % – 106 106 775 – 27 803
Cohesion Fund 7 969 6 600 – 1 095 7 695 97 % – 0 0 242 – 32 274
Cohesion Fund contrib. to CEF-
Transport
1 618 1 606 – 2 1 608 99 % – 9 9 – – – –
Pilot projects and prep. actions 4 4 – – 4 97 % – 0 0 – – – –
European Social Fund Plus (ESF+)
*
18 736 16 731 – 1 913 18 643 100 % – 15 15 52 – 25 77
Support to Turkish-Cypriot
Community
42 34 – 7 41 99 % – 0 0 – – (0) (0)
European Recovery and Resilience 2 907 123 – 2 230 2 353 81 % – 554 554 0 – 0 0
Pericles IV 1 1 – 0 1 98 % – 0 0 – – – –
EU Recovery 3 391 3 340 – 2 3 342 99 % – 49 49 – – – –
RescEU 268 240 0 14 254 95 % 0 13 14 (0) – – (0)
EU4Health 796 753 – 41 795 100 % – 1 1 0 – 0 0
Emergency support within the
Union (ESI)
8 – – – – – – 8 8 – – – –
Decentralised agencies 312 263 – 38 301 96 % – 12 12 0 – – 0
Pilot projects and prep. actions – – – – – - – – – – – – –
Actions under prerogatives of
Commission
13 12 – 0 13 100 % – – – – – – –
Employment and Social Innovation 104 93 – 7 101 96 % – 4 4 0 – 0 0
Erasmus+ 4 789 3 796 – 477 4 273 89 % – 516 516 0 – – 0
European Solidarity Corps (ESC) 193 144 – 16 160 83 % – 34 34 – – – –
Creative Europe 356 335 – 15 350 98 % – 6 6 – – 0 0
Justice 43 42 – 1 42 99 % – 0 0 – – – –
Rights and Values 222 219 – 1 220 99 % – 1 1 0 – – 0
Annual accounts of the European Union 2024
170
EUR million
Total
appropr.
available
Commitments made
Appropriations carried
over
to 2025
Appropriations lapsing
Programme
from final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total %
from
final
adopted
budget
from
assigne
d
revenue
Total
from
final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total
1 2 3 4
5=2+3
+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Decentralised agencies 313 303 – 5 308 99 % – 5 5 0 – – 0
Other actions 8 8 – 0 8 100 % – – – – – – –
Pilot projects and prep. actions 26 26 – 0 26 99 % – 0 0 – – 0 0
Actions under prerogatives of
Commission
190 183 – 6 189 100 % – 0 0 0 – 0 0
Total Heading 2: Cohesion,
Resilience and Values
86 683 73 513 12 10 668 84 193 97 % 0 1 335 1 335 1 070 – 85 1 155
3 Agricultural Guarantees 41 745 40 465 – 345 40 810 98 % 366 567 933 2 – – 2
Other progr. of Natural Resources
and Environment
0 0 0 0 0 - 0 0 0 0 0 0 0
Agricultural Fund for Rural
Development
13 576 13 155 – 1 13 156 97 % – 189 189 0 – 230 231
Maritime and Fisheries 1 224 1 070 – 127 1 196 98 % – 23 23 0 – 4 4
Fisheries (SFPA and RFMO) 130 130 – – 130 100 % – – – 0 – – 0
Decentralised agencies 32 30 – 1 31 96 % – 1 1 – – – –
Other actions 0 0 0 0 0 - 0 0 0 0 0 0 0
Pilot projects and prep. actions 9 8 – – 8 99 % – – – 0 – – 0
Environment and Climate (LIFE) 773 768 – 4 771 100 % – 2 2 0 – 0 0
Just Transition Fund 1 736 1 479 – 160 1 640 94 % – 86 86 11 – 0 11
Loan facility under Just Transition
Mechanism
554 50 – 76 126 23 % – 428 428 – – – –
Decentralised agencies 74 66 – 8 73 99 % – 0 0 – – 0 0
Pilot projects and prep. actions 6 6 – – 6 100 % – – – – – – –
Specific actions 16 16 – – 16 100 % – – – 0 – – 0
Total Heading 3: Natural
Resources and Environment
59 874 57 243 – 721 57 964 97 % 366 1 296 1 663 13 – 234 247
4 Asylum, Migration and Integration 1 513 1 502 – 6 1 508 100 % – 5 5 1 – 0 1
Decentralised agencies 170 152 – 13 165 97 % – 6 6 – – 0 0
Pilot projects and prep. actions 0 0 0 0 0 - 0 0 0 0 0 0 0
Border Mngmt. (IBMF) - Border
mngmt and visa
1 186 1 004 – 53 1 057 89 % – 129 129 1 – – 1
Annual accounts of the European Union 2024
171
EUR million
Total
appropr.
available
Commitments made
Appropriations carried
over
to 2025
Appropriations lapsing
Programme
from final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total %
from
final
adopted
budget
from
assigne
d
revenue
Total
from
final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total
1 2 3 4
5=2+3
+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Border Mngmt. (IBMF) - Customs
equipment
144 144 – – 144 100 % – 0 0 – – – –
Decentralised agencies 1 218 1 090 – 76 1 166 96 % – 52 52 – – – –
Total Heading 4: Migration and
Border Management
4 232 3 892 – 147 4 039 95 % – 191 191 1 – 0 1
5 Internal Security Fund (ISF) 325 323 – 1 324 99 % – 2 2 0 – – 0
Nuclear decommissioning 67 67 – – 67 100 % – – – – – – –
Nuclear Safety and
decommissioning
61 60 – 0 61 100 % – 0 0 0 – 0 0
Decentralised agencies 269 252 – 11 263 98 % – 6 6 0 – 0 0
Pilot projects and prep. actions – – – – – - – – – – – – –
Actions under prerogatives of
Commission
32 32 – – 32 100 % – 0 0 0 – – 0
European Defence (Research) 355 344 – 12 355 100 % – – – – – – –
European Defence (Non Research) 703 680 – 23 703 100 % – – – – – – –
Military Mobility 251 251 – – 251 100 % – – – – – – –
Defence instrument on common
procurement
259 250 – 9 259 100 % – – – – – – –
Defence Industrial Reinforcement
instrument
359 343 – 16 359 100 % – – – – – – –
European Defence industry
Programme
0 0 0 0 0 - 0 0 0 0 0 0 0
Pilot projects and prep. actions – – – – – - – – – – – – –
Union Secure Connectivity 96 96 – – 96 100 % – – – – – – –
Total Heading 5: Security and
Defence
2 778 2 699 – 71 2 770 100 % – 8 8 0 – 0 0
6
Neighbourhood, Developm. and
Intl. Cooperation
12 940 11 032 400 525 11 956 92 % 482 441 923 (0) 61 0 61
Instrument for Nuclear Safety
(EINS)
63 42 0 1 43 68 % 0 20 20 0 0 – 0
Humanitarian Aid (HUMA) 2 521 2 495 – 17 2 512 100 % – 9 9 0 – 0 0
Common Foreign and Security
Policy (CFSP)
406 385 – 21 406 100 % – 0 0 0 – (0) 0
Annual accounts of the European Union 2024
172
EUR million
Total
appropr.
available
Commitments made
Appropriations carried
over
to 2025
Appropriations lapsing
Programme
from final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total %
from
final
adopted
budget
from
assigne
d
revenue
Total
from
final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total
1 2 3 4
5=2+3
+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Overseas Countries and Territories
(OCT)
107 71 1 – 72 67 % 1 35 36 (0) 0 – 0
MFA+ 574 5 – 569 574 100 % – – – – – – –
Other actions 80 79 – 0 80 99 % – 0 0 0 – – 0
Pilot projects and prep. actions 0 – – – – – – 0 0 – – 0 0
Actions under prerogatives of
Commission
95 95 – 0 95 100 % – 0 0 0 – – 0
Pre-Accession Assistance (IPA III) 2 281 2 043 20 83 2 146 94 % 73 60 133 – 1 (0) 1
Facility for Western Balkans 501 400 – – 400 80 % 101 – 101 – – – –
Pilot projects and prep. actions 0 0 0 0 0 - 0 0 0 0 0 0 0
Total Heading 6: Neighbourhood
and the World
19 569 16 646 421 1 217 18 283 93 % 657 566 1 224 0 62 0 62
7 Staff Pensions 2 870 2 589 – 273 2 862 100 % – 7 7 – – 0 0
(Pensions former Members) EP 15 15 – – 15 100 % – – – – – – –
(Pensions former Members) ECC 1 1 – – 1 100 % – – – – – – –
(Pensions former Members)
Commission
9 9 – – 9 100 % – – – – – – –
(Pensions former Members) CJEU 15 15 – – 15 100 % – – – – – – –
(Pensions former Members) ECA 7 7 – – 7 100 % – – – – – – –
(Pensions former Members)
Ombudsman
0 0 – – 0 100 % – – – – – – –
(Pensions former Members) EDPS 0 0 – – 0 100 % – – – – – – –
European schools 275 246 – 23 269 98 % – 6 6 0 – – 0
Remuneration statutory staff 3 027 2 897 – 60 2 957 98 % – 64 64 6 – – 6
Remuneration external staff 386 265 – 45 310 80 % – 75 75 0 – 0 0
Members - Salaries and
allowances
18 17 – 0 17 95 % – 0 0 1 – – 1
Members - Temporary allowances 1 1 – – 1 100 % – – – – – – –
Recruitment costs 31 30 – 0 31 98 % – 0 0 0 – – 0
Termination of service 7 7 – – 7 100 % – – – – – – –
Annual accounts of the European Union 2024
173
EUR million
Total
appropr.
available
Commitments made
Appropriations carried
over
to 2025
Appropriations lapsing
Programme
from final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total %
from
final
adopted
budget
from
assigne
d
revenue
Total
from
final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total
1 2 3 4
5=2+3
+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Training costs 25 17 – 4 22 88 % – 3 3 0 – 0 0
Social and Mobility 53 23 – 15 38 72 % – 15 15 0 – 0 0
Information and comm.
technology
514 287 – 134 420 82 % – 93 93 0 – 0 0
Rents and purchases 1 287 326 – 314 639 50 % – 648 648 0 – – 0
Linked to buildings 150 107 – 22 129 86 % – 21 21 0 – – 0
Security 87 74 – 9 83 96 % – 3 3 0 – 0 0
Mission and representation 57 54 – 2 55 97 % – 2 2 0 – 0 0
Meetings, committees, conference 17 15 – 1 16 92 % – 1 1 0 – 0 0
Official journal 3 3 – 0 3 100 % – 0 0 – – – –
Publications 16 12 – 3 14 90 % – 2 2 0 – – 0
Acquisition of information 7 7 – 0 7 94 % – 0 0 0 – – 0
Studies and investigations 6 6 – 0 6 99 % – 0 0 0 – – 0
General equipment, vehicle,
furniture
24 16 – 6 23 94 % – 1 1 0 – 0 0
Linguistic external services 79 27 – 36 63 80 % – 16 16 – – 0 0
Other administrative expenditure 45 19 – 21 41 89 % – 5 5 0 – 0 0
Pilot projects and prep. actions 0 0 0 0 0 - 0 0 0 0 0 0 0
Administrative expenditure of
Other Institutions
5 470 4 911 1 379 5 291 97 % 0 134 134 45 – 0 45
Total Heading 7: European Public
Administration
14 502 12 003 1 1 348 13 351 92 % – 1 097 1 097 54 – 0 54
O Innovation Fund (IF) 3 886 – – 603 603 16 % – 3 283 3 283 – – – –
Ukraine Facility 4 924 4 737 – 150 4 887 99 % 30 7 37 0 – 0 0
Other actions 131 – – 62 62 48 % – 68 68 – – – –
Total Heading O: Outside MFF 8 941 4 737 – 815 5 552 62 % 30 3 359 3 389 0 – 0 0
S
Solidarity and Emergency Aid
(SEAR)
0 0 0 0 0 - 0 0 0 0 0 0 0
European Solidarity Reserve 1 544 834 400 – 1 234 80 % 310 – 310 – – – –
Annual accounts of the European Union 2024
174
EUR million
Total
appropr.
available
Commitments made
Appropriations carried
over
to 2025
Appropriations lapsing
Programme
from final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total %
from
final
adopted
budget
from
assigne
d
revenue
Total
from
final
adopted
budget
from
carry-
overs
from
assigne
d
revenue
Total
1 2 3 4
5=2+3
+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Emergency Aid Reserve – – – – – - – – – – – – –
European Globalisation Adjustment
(EGF)
51 8 – – 8 16 % – 7 7 25 – 10 35
Brexit Adjustment Reserve 304 – 7 297 304 100 % – – – – – – –
Total Heading S: Solidarity
mechanisms within and outside
the Union (Special instruments)
1 899 842 407 297 1 546 81 % 310 7 318 25 – 10 35
Total 227 687 193 064 937 19 661 213 661 94 % 1 365 11 103 12 468 1 166 62 330 1 558
Annual accounts of the European Union 2024
175
6.9. DETAILED MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS
EUR million
Total
appropr.
available
Payments made
Appropriations carried over
to 2025
Appropriations lapsing
Programme
from
final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from
final
adopted
budget
from
assigned
revenue
Total
from
final
adopted
budge
from
carry-
overs
from
assign
ed
revenu
e
Total
1 2 3 4
5=2+
3+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
1 Horizon Europe 19 199 11 956 59 1 789 13 803 72 % 72 5 314 5 386 0 8 2 10
Euratom 494 354 14 36 405 82 % 18 71 89 0 1 – 1
Thermonuclear Experimental
Reactor (ITER)
568 561 1 1 563 99 % 2 2 4 (0) 0 – 0
Other actions 446 – – 86 86 19 % – 361 361 – – – –
Pilot projects and prep. actions 22 21 – – 21 94 % – 0 0 1 – – 1
InvestEU Fund 3 203 253 1 2 836 3 090 96 % 1 109 109 4 0 0 4
CEF - Transport 2 112 2 069 1 37 2 107 100 % 1 4 5 0 0 – 0
CEF - Energy 784 780 2 – 782 100 % 1 2 3 0 0 – 0
CEF - Digital 145 140 1 2 143 98 % 0 2 3 0 0 – 0
Digital Europe 1 112 1 027 7 41 1 075 97 % 6 29 35 1 0 0 2
Decentralised agencies 231 220 – 9 230 99 % – 1 1 0 – – 0
Other actions 171 1 – 10 11 6 % – 161 161 0 – – 0
Pilot projects and prep. actions 20 20 – – 20 100 % – – – 0 – – 0
Actions under prerogatives of
Commission
28 22 – 4 27 97 % – 1 1 0 – 0 0
Single Market 657 573 8 22 603 92 % 7 46 53 0 1 0 1
EU Anti-Fraud 22 20 – 0 20 90 % – 0 0 2 – 0 2
Taxation 36 35 0 0 35 97 % 0 1 1 0 0 – 0
Customs 141 132 0 1 133 95 % 0 7 7 0 0 – 0
Decentralised agencies 147 132 – 10 141 96 % – 5 5 0 – – 0
Other actions 8 8 – 0 8 96 % – 0 0 – – – –
Pilot projects and prep. actions 7 7 – – 7 96 % – – – 0 – – 0
European Space Programme 2 673 2 175 5 101 2 280 85 % 4 388 392 0 0 0 0
Decentralised agencies 86 82 – 3 85 99 % – 1 1 – – – –
Annual accounts of the European Union 2024
176
EUR million
Total
appropr.
available
Payments made
Appropriations carried over
to 2025
Appropriations lapsing
Programme
from
final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from
final
adopted
budget
from
assigned
revenue
Total
from
final
adopted
budge
from
carry-
overs
from
assign
ed
revenu
e
Total
1 2 3 4
5=2+
3+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Pilot projects & preparatory
actions
– – – – – - – – – – – – –
Union Secure Connectivity 190 190 – – 190 100 % 0 – 0 – 0 – 0
Total Heading 1: Single Market,
Innovation and Digital
32 504 20 778 98 4 988 25 864 80 % 113 6 504 6 617 9 11 3 23
2 Regional Development (ERDF) * 30 528 15 903 0 13 357 29 261 96 % 1 1 266 1 267 0 0 – 0
Cohesion Fund 4 088 2 272 0 1 815 4 087 100 % 0 0 1 (0) 0 0 0
Cohesion Fund contrib. to CEF-
Transport
2 248 2 238 – 8 2 246 100 % – 3 3 0 – (0) 0
Pilot projects and prep. actions 3 3 – – 3 97 % – 0 0 – – – –
European Social Fund Plus
(ESF+) *
17 574 6 074 0 10 278 16 352 93 % 1 1 221 1 221 0 0 0 1
Support to Turkish-Cypriot
Community
44 37 0 7 44 99 % 0 – 0 0 0 – 0
European Recovery and
Resilience
55 342 98 2 55 189 55 288 100 % 2 52 54 0 0 0 0
Pericles IV 1 1 0 0 1 95 % – 0 0 0 – – 0
EU Recovery 4 042 1 477 651 1 2 128 53 % 1 863 51 1 914 – 0 – 0
RescEU 862 260 125 372 757 88 % – 105 105 – – 0 0
EU4Health 580 540 4 29 573 99 % 4 2 5 0 1 0 1
Emergency support within the
Union (ESI)
36 – – 9 9 24 % – 27 27 – – 1 1
Decentralised agencies 305 256 – 38 294 96 % – 12 12 0 – – 0
Pilot projects and prep. actions – – – – – - – – – – – – –
Actions under prerogatives of
Commission
12 12 – 0 12 100 % – – – 0 – – 0
Employment and Social
Innovation
95 81 1 5 87 92 % 1 6 8 0 0 0 0
Erasmus+ 4 631 3 547 16 478 4 041 87 % 18 572 590 (0) 0 0 1
European Solidarity Corps (ESC) 192 128 5 18 151 78 % 3 38 42 (0) 0 0 0
Creative Europe 428 396 4 17 417 97 % 2 9 11 0 0 0 0
Justice 50 47 1 1 49 98 % 1 0 1 0 0 – 0
Annual accounts of the European Union 2024
177
EUR million
Total
appropr.
available
Payments made
Appropriations carried over
to 2025
Appropriations lapsing
Programme
from
final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from
final
adopted
budget
from
assigned
revenue
Total
from
final
adopted
budge
from
carry-
overs
from
assign
ed
revenu
e
Total
1 2 3 4
5=2+
3+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Rights and Values 201 196 1 1 199 99 % 1 1 2 0 0 – 0
Decentralised agencies 308 299 – 5 304 98 % – 5 5 0 – 0 0
Other actions 9 9 – 0 9 100 % – – – 0 – – 0
Pilot projects and prep. actions 31 30 – 0 31 99 % – 0 0 0 – – 0
Actions under prerogatives of
Commission
185 178 – 6 184 99 % – 1 1 0 – – 0
Total Heading 2: Cohesion,
Resilience and Values
121 796 34 082 811 81 633 116 525 96 % 1 898 3 368 5 266 0 2 2 5
3 Agricultural Guarantees 41 702 40 416 0 345 40 762 98 % 367 567 934 6 0 – 6
Other progr. of Natural
Resources and Environment
0 0 0 0 0 - 0 0 0 0 0 0 0
Agricultural Fund for Rural
Development
16 478 13 765 0 1 704 15 469 94 % 0 1 008 1 008 0 0 – 1
Maritime and Fisheries 1 155 978 1 173 1 152 100 % 1 2 3 0 0 0 0
Fisheries (SFPA and RFMO) 114 114 – – 114 100 % – – – – – – –
Decentralised agencies 32 30 – 1 31 96 % – 1 1 – – – –
Other actions 0 0 0 0 0 - 0 0 0 0 0 0 0
Pilot projects and prep. actions 3 3 – – 3 100 % – – – 0 – – 0
Environment and Climate (LIFE) 612 592 7 3 603 99 % 8 1 8 0 0 0 1
Just Transition Fund 6 470 5 – 6 145 6 150 95 % – 320 320 – – 0 0
Loan facility under Just
Transition Mechanism
582 60 – 19 79 14 % – 503 503 – – – –
Decentralised agencies 74 66 – 8 73 99 % – 0 0 – – 0 0
Pilot projects and prep. actions 9 9 – – 9 99 % – – – 0 – – 0
Specific actions 4 4 – – 4 100 % – – – – – – –
Total Heading 3: Natural
Resources and Environment
67 233 56 043 8 8 398 64 448 96 % 376 2 401 2 777 7 0 0 8
4
Asylum, Migration and
Integration
1 372 1 357 1 8 1 366 100 % 2 3 5 1 0 – 1
Decentralised agencies 170 152 – 13 165 97 % – 6 6 – – 0 0
Pilot projects and prep. actions 0 0 0 0 0 - 0 0 0 0 0 0 0
Annual accounts of the European Union 2024
178
EUR million
Total
appropr.
available
Payments made
Appropriations carried over
to 2025
Appropriations lapsing
Programme
from
final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from
final
adopted
budget
from
assigned
revenue
Total
from
final
adopted
budge
from
carry-
overs
from
assign
ed
revenu
e
Total
1 2 3 4
5=2+
3+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Border Mngmt. (IBMF) - Border
mngmt and visa
873 563 1 75 639 73 % 1 231 233 1 0 – 1
Border Mngmt. (IBMF) -
Customs equipment
141 117 0 0 117 83 % 24 – 24 – 0 – 0
Decentralised agencies 1 171 1 043 – 76 1 119 96 % – 52 52 – – – –
Total Heading 4: Migration and
Border Management
3 727 3 231 2 171 3 405 91 % 28 292 320 2 0 0 2
5 Internal Security Fund (ISF) 215 209 1 1 211 99 % 1 2 3 0 0 – 0
Nuclear decommissioning 142 142 – – 142 100 % – – – 0 – – 0
Nuclear Safety and
decommissioning
79 75 1 0 76 97 % 2 – 2 1 0 0 1
Decentralised agencies 266 247 – 11 257 97 % – 6 6 2 – 0 2
Pilot projects and prep. actions 1 – – – – – – – – 1 – – 1
Actions under prerogatives of
Commission
36 35 – – 35 98 % – 0 0 1 – – 1
European Defence (Research) 215 205 1 7 214 99 % 1 – 1 0 0 – 0
European Defence (Non
Research)
570 545 2 21 568 100 % 2 – 2 (0) 0 0 0
Military Mobility 335 335 1 – 335 100 % 0 – 0 0 0 – 0
Defence instrument on common
procurement
– – – – – - – – – – – – –
Defence Industrial
Reinforcement instrument
173 170 1 3 173 100 % – – – – 0 0 0
European Defence industry
Programme
0 0 0 0 0 - 0 0 0 0 0 0 0
Pilot projects and prep. actions 0 – – – – – – – – – – 0 0
Union Secure Connectivity 110 110 – – 110 100 % – – – – – – –
Total Heading 5: Security and
Defence
2 142 2 073 7 42 2 123 99 % 6 8 14 5 1 0 5
6
Neighbourhood, Developm. and
Intl. Cooperation
10 153 9 192 64 346 9 603 95 % 62 482 544 0 7 0 7
Instrument for Nuclear Safety
(EINS)
55 33 1 8 41 75 % 1 13 13 0 0 – 0
Humanitarian Aid (HUMA) 2 458 2 419 6 17 2 442 99 % 6 9 16 0 0 – 1
Annual accounts of the European Union 2024
179
EUR million
Total
appropr.
available
Payments made
Appropriations carried over
to 2025
Appropriations lapsing
Programme
from
final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from
final
adopted
budget
from
assigned
revenue
Total
from
final
adopted
budge
from
carry-
overs
from
assign
ed
revenu
e
Total
1 2 3 4
5=2+
3+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Common Foreign and Security
Policy (CFSP)
397 383 0 9 393 99 % 1 3 4 0 0 – 0
Overseas Countries and
Territories (OCT)
79 47 8 – 55 69 % 4 21 25 (0) 0 – 0
MFA+ 530 5 – 416 421 79 % – 109 109 – – – –
Other actions 51 50 – 0 51 99 % – 0 0 0 – – 0
Pilot projects and prep. actions 0 0 – – 0 37 % – 0 0 – – 0 0
Actions under prerogatives of
Commission
88 88 – 0 88 100 % – 0 0 0 – – 0
Pre-Accession Assistance (IPA
III)
2 405 2 128 74 100 2 301 96 % 10 92 102 0 2 – 2
Facility for Western Balkans 24 1 – – 1 3 % 23 – 23 – – – –
Pilot projects and prep. actions 0 0 0 0 0 - 0 0 0 0 0 0 0
Total Heading 6: Neighbourhood
and the World
16 241 14 346 153 897 15 395 95 % 107 729 836 1 9 0 10
7 Staff Pensions 2 870 2 589 – 273 2 862 100 % – 7 7 – – 0 0
(Pensions former Members) EP 15 15 – – 15 100 % – – – – – – –
(Pensions former Members) ECC 1 1 – – 1 100 % – – – – – – –
(Pensions former Members)
Commission
9 9 – – 9 100 % – – – – – – –
(Pensions former Members)
CJEU
15 15 – – 15 100 % – – – – – – –
(Pensions former Members) ECA 7 7 – – 7 100 % – – – – – – –
(Pensions former Members)
Ombudsman
0 0 – – 0 100 % – – – – – – –
(Pensions former Members)
EDPS
0 0 – – 0 100 % – – – – – – –
European schools 276 246 1 20 266 96 % 0 10 10 0 – – 0
Remuneration statutory staff 3 027 2 897 0 60 2 957 98 % 0 64 64 6 0 – 6
Remuneration external staff 419 243 29 44 316 75 % 22 77 98 0 4 0 4
Members - Salaries and
allowances
18 16 0 0 16 89 % 1 0 1 1 0 – 1
Annual accounts of the European Union 2024
180
EUR million
Total
appropr.
available
Payments made
Appropriations carried over
to 2025
Appropriations lapsing
Programme
from
final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from
final
adopted
budget
from
assigned
revenue
Total
from
final
adopted
budge
from
carry-
overs
from
assign
ed
revenu
e
Total
1 2 3 4
5=2+
3+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Members - Temporary
allowances
1 0 – – 0 30 % 0 – 0 – – – –
Recruitment costs 33 27 1 0 29 87 % 3 0 4 0 0 – 1
Termination of service 7 7 – – 7 99 % 0 – 0 – – – –
Training costs 35 8 10 2 20 56 % 10 5 15 0 1 0 1
Social and Mobility 65 16 9 11 36 56 % 7 20 27 0 1 0 1
Information and comm.
technology
685 167 170 89 425 62 % 120 139 259 0 1 0 1
Rents and purchases 1 294 295 7 313 615 48 % 30 649 679 0 0 – 0
Linked to buildings 214 63 58 17 138 65 % 44 26 70 0 5 – 5
Security 125 49 36 2 87 70 % 25 10 35 0 3 0 3
Mission and representation 69 44 8 2 54 78 % 10 2 12 0 3 0 3
Meetings, committees,
conference
24 10 3 1 14 58 % 5 2 7 0 3 0 3
Official journal 4 2 1 – 2 66 % 1 0 1 – 0 – 0
Publications 22 6 6 1 14 63 % 5 3 8 0 0 – 0
Acquisition of information 9 5 2 0 7 74 % 2 0 2 0 0 – 0
Studies and investigations 10 1 5 – 5 52 % 5 0 5 0 0 0 0
General equipment, vehicle,
furniture
36 7 12 5 24 66 % 9 3 12 0 0 0 0
Linguistic external services 81 26 2 35 63 78 % 2 16 18 – 0 0 0
Other administrative expenditure 55 14 9 14 38 69 % 5 12 17 0 1 0 1
Pilot projects and prep. actions 0 0 0 0 0 - 0 0 0 0 0 0 0
Administrative expenditure of
Other Institutions
6 091 4 329 557 338 5 224 86 % 582 183 766 45 55 1 100
Total Heading 7: European
Public Administration
15 516 11 114 926 1 226 13 266 85 % 889 1 229 2 118 54 78 1 133
O Innovation Fund (IF) 10 218 – – 292 292 3 % – 9 926 9 926 – – – –
Ukraine Facility 3 912 3 634 – 3 3 637 93 % 121 153 274 (0) – – (0)
Other actions 132 – – 57 57 44 % – 74 74 – – – –
Annual accounts of the European Union 2024
181
EUR million
Total
appropr.
available
Payments made
Appropriations carried over
to 2025
Appropriations lapsing
Programme
from
final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from
final
adopted
budget
from
assigned
revenue
Total
from
final
adopted
budge
from
carry-
overs
from
assign
ed
revenu
e
Total
1 2 3 4
5=2+
3+4
6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
Total Heading O: Outside MFF 14 261 3 634 – 353 3 987 28 % 121 10 154 10 274 (0) – – (0)
S
Solidarity and Emergency Aid
(SEAR)
0 0 0 0 0 - 0 0 0 0 0 0 0
European Solidarity Reserve 1 544 834 400 – 1 234 80 % 310 – 310 – – – –
Emergency Aid Reserve – – – – – - – – – – – – –
European Globalisation
Adjustment (EGF)
18 0 0 8 8 47 % 0 7 7 0 0 2 2
Brexit Adjustment Reserve 786 – 275 458 733 93 % – – – – 53 – 53
Total Heading S: Solidarity
mechanisms within and outside
the Union (Special instruments)
2 347 834 675 466 1 975 84 % 310 7 318 0 53 2 55
Total 275 769 146 134 2 680 98 175 246 988 90 % 3 848 24 692 28 540 78 154 8 240
Annual accounts of the European Union 2024
182
6.10. DETAILED MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL)
EUR million
Commitments outstanding at the end of previous year Commitments of the current year
Total
commitm.
outstanding
at the end of
the year
Programme
Commitm.
carried
forward from
previous
year
Decommitm./
Revaluations/
Cancellations
Payments
Commitm.
outstanding
at year-end
Commitm.
made during
the year
Payments
Cancellation
of commitm.
which cannot
be carried
over
Commitm.
outstanding
at year-end
1 2 3 4=1+2+3 5 6 7 8=5+6+7 9=4+8
1 Horizon Europe 27 939 (566) (9 905) 17 468 15 081 (3 898) (5) 11 178 28 646
Euratom 357 (5) (249) 103 287 (156) – 131 234
Thermonuclear Experimental Reactor
(ITER)
1 576 (0) (484) 1 093 438 (80) (1) 356 1 449
Other actions 135 (8) (55) 72 222 (30) – 191 263
Pilot projects and prep. actions 48 (1) (16) 31 24 (4) – 20 50
InvestEU Fund 5 834 (31) (1 474) 4 329 1 950 (1 616) – 334 4 663
CEF - Transport 6 503 (88) (2 093) 4 322 1 780 (13) – 1 767 6 089
CEF - Energy 3 873 (42) (778) 3 053 885 (4) – 881 3 934
CEF - Digital 650 (39) (137) 474 88 (6) – 83 556
Digital Europe 2 116 (3) (830) 1 283 1 313 (245) (0) 1 068 2 351
Decentralised agencies 39 – (39) – 227 (191) – 36 36
Other actions 2 (0) (1) 1 70 (10) – 60 61
Pilot projects and prep. actions 34 (2) (10) 22 14 (10) – 4 26
Actions under prerogatives of
Commission
36 (1) (21) 13 28 (6) – 23 36
Single Market 949 (58) (461) 430 626 (141) (0) 484 914
EU Anti-Fraud 29 (0) (11) 18 25 (9) – 16 34
Taxation 42 (1) (26) 14 39 (9) – 30 44
Customs 146 (2) (97) 47 137 (36) – 101 148
Decentralised agencies 0 (0) – – 142 (141) – 0 0
Other actions 7 (0) (7) 0 6 (1) – 5 5
Pilot projects and prep. actions 21 (1) (6) 14 12 (1) – 11 25
European Space Programme 1 413 (4) (953) 457 2 353 (1 327) – 1 026 1 483
Decentralised agencies 20 – (20) – 82 (65) – 17 17
Annual accounts of the European Union 2024
183
EUR million
Commitments outstanding at the end of previous year Commitments of the current year
Total
commitm.
outstanding
at the end of
the year
Programme
Commitm.
carried
forward from
previous
year
Decommitm./
Revaluations/
Cancellations
Payments
Commitm.
outstanding
at year-end
Commitm.
made during
the year
Payments
Cancellation
of commitm.
which cannot
be carried
over
Commitm.
outstanding
at year-end
1 2 3 4=1+2+3 5 6 7 8=5+6+7 9=4+8
Pilot projects & preparatory actions – – – – 17 – – 17 17
Union Secure Connectivity 156 (0) (156) – 117 (34) – 83 83
Total Heading 1: Single Market,
Innovation and Digital
51 926 (853) (17 829) 33 244 25 962 (8 035) (7) 17 920 51 164
2 Regional Development (ERDF) * 91 069 (86) (27 087) 63 896 43 466 (2 173) (1) 41 292 105 188
Cohesion Fund 12 460 (19) (3 288) 9 153 7 695 (799) (0) 6 896 16 048
Cohesion Fund contrib. to CEF-Transport 6 080 (40) (2 234) 3 806 1 608 (12) – 1 596 5 402
Pilot projects and prep. actions 3 (0) (1) 2 4 (2) – 1 4
European Social Fund Plus (ESF+) * 45 251 (15) (15 798) 29 438 18 643 (554) (0) 18 090 47 528
Support to Turkish-Cypriot Community 100 (3) (39) 59 41 (5) (0) 36 95
European Recovery and Resilience 214 518 (13) (51 488) 163 017 2 353 (3 800) – (1 447) 161 570
Pericles IV 1 (0) (0) 0 1 (1) – 0 0
EU Recovery 651 (0) (651) – 3 342 (1 477) – 1 865 1 865
RescEU 1 707 (11) (659) 1 036 254 (97) (0) 157 1 193
EU4Health 1 301 (15) (403) 883 795 (171) – 624 1 507
Emergency support within the Union
(ESI)
40 (3) (9) 28 – – – – 28
Decentralised agencies 43 (0) (12) 31 301 (282) – 19 50
Pilot projects and prep. actions 0 – – 0 – – – – 0
Actions under prerogatives of
Commission
10 (1) (8) 1 13 (4) – 9 10
Employment and Social Innovation 184 (12) (65) 107 101 (23) – 78 185
Erasmus+ 2 083 (64) (661) 1 358 4 273 (3 380) – 893 2 251
European Solidarity Corps (ESC) 166 (27) (42) 97 160 (108) – 52 149
Creative Europe 427 (6) (220) 201 350 (197) – 153 354
Justice 67 (7) (24) 36 42 (25) – 18 53
Rights and Values 272 (5) (119) 147 220 (80) – 140 288
Decentralised agencies 49 (0) (7) 41 308 (296) – 12 53
Other actions 16 (2) (9) 5 8 (1) – 7 13
Annual accounts of the European Union 2024
184
EUR million
Commitments outstanding at the end of previous year Commitments of the current year
Total
commitm.
outstanding
at the end of
the year
Programme
Commitm.
carried
forward from
previous
year
Decommitm./
Revaluations/
Cancellations
Payments
Commitm.
outstanding
at year-end
Commitm.
made during
the year
Payments
Cancellation
of commitm.
which cannot
be carried
over
Commitm.
outstanding
at year-end
1 2 3 4=1+2+3 5 6 7 8=5+6+7 9=4+8
Pilot projects and prep. actions 65 (2) (31) 32 26 – – 26 58
Actions under prerogatives of
Commission
195 (4) (122) 69 189 (61) – 128 197
Total Heading 2: Cohesion, Resilience and
Values
376 757 (336) (102 977) 273 444 84 193 (13 548) (1) 70 644 344 088
3 Agricultural Guarantees 358 (35) (102) 221 40 810 (40 660) – 150 371
Other progr. of Natural Resources and
Environment
0 0 0 0 0 0 0 0 0
Agricultural Fund for Rural Development 37 891 (61) (15 431) 22 399 13 156 (38) (0) 13 118 35 517
Maritime and Fisheries 3 299 (2) (1 092) 2 204 1 196 (59) (0) 1 137 3 341
Fisheries (SFPA and RFMO) 23 (1) (14) 8 130 (100) – 30 38
Decentralised agencies – – – – 31 (31) – – –
Other actions 0 0 0 0 0 0 0 0 0
Pilot projects and prep. actions 4 (0) (2) 2 8 (1) – 8 10
Environment and Climate (LIFE) 2 547 (25) (565) 1 957 771 (37) – 734 2 691
Just Transition Fund 13 276 (0) (6 149) 7 127 1 640 (1) – 1 638 8 765
Loan facility under Just Transition
Mechanism
57 – (36) 21 126 (43) – 83 104
Decentralised agencies – – – – 73 (73) – – –
Pilot projects and prep. actions 18 (0) (9) 9 6 – – 6 15
Specific actions 4 (0) (1) 3 16 (3) – 13 16
Total Heading 3: Natural Resources and
Environment
57 477 (125) (23 401) 33 950 57 964 (41 048) (0) 16 916 50 867
4 Asylum, Migration and Integration 2 720 (0) (1 291) 1 428 1 508 (74) (0) 1 433 2 862
Decentralised agencies 13 – – 13 165 (165) – – 13
Pilot projects and prep. actions 0 0 0 0 0 0 0 0 0
Border Mngmt. (IBMF) - Border mngmt
and visa
1 798 (0) (585) 1 213 1 057 (54) (0) 1 002 2 215
Border Mngmt. (IBMF) - Customs
equipment
278 (0) (71) 207 144 (46) – 98 305
Decentralised agencies 312 – (182) 130 1 166 (937) – 230 359
Annual accounts of the European Union 2024
185
EUR million
Commitments outstanding at the end of previous year Commitments of the current year
Total
commitm.
outstanding
at the end of
the year
Programme
Commitm.
carried
forward from
previous
year
Decommitm./
Revaluations/
Cancellations
Payments
Commitm.
outstanding
at year-end
Commitm.
made during
the year
Payments
Cancellation
of commitm.
which cannot
be carried
over
Commitm.
outstanding
at year-end
1 2 3 4=1+2+3 5 6 7 8=5+6+7 9=4+8
Total Heading 4: Migration and Border
Management
5 121 (1) (2 129) 2 991 4 039 (1 276) (0) 2 763 5 754
5 Internal Security Fund (ISF) 524 (0) (205) 319 324 (6) (0) 317 636
Nuclear decommissioning 405 (0) (142) 263 67 (0) – 67 331
Nuclear Safety and decommissioning 312 (1) (66) 246 61 (10) – 50 296
Decentralised agencies – – – – 263 (257) – 6 6
Pilot projects and prep. actions 1 – – 1 – – – – 1
Actions under prerogatives of
Commission
26 (2) (16) 8 32 (19) – 13 22
European Defence (Research) 646 (0) (198) 448 355 (16) (0) 339 788
European Defence (Non Research) 1 323 (0) (454) 869 703 (114) – 589 1 458
Military Mobility 376 (1) (218) 157 251 (117) – 134 291
Defence instrument on common
procurement
– – – – 259 – – 259 259
Defence Industrial Reinforcement
instrument
157 (0) (49) 107 359 (124) – 235 343
European Defence industry Programme 0 0 0 0 0 0 0 0 0
Pilot projects and prep. actions 0 – – 0 – – – – 0
Union Secure Connectivity 30 – (30) – 96 (80) – 16 16
Total Heading 5: Security and Defence 3 803 (4) (1 378) 2 420 2 770 (744) (0) 2 025 4 445
6
Neighbourhood, Developm. and Intl.
Cooperation
30 682 (639) (7 791) 22 252 11 956 (1 811) (0) 10 145 32 397
Instrument for Nuclear Safety (EINS) 140 (5) (33) 102 43 (8) – 34 137
Humanitarian Aid (HUMA) 1 063 (6) (557) 500 2 512 (1 885) (0) 627 1 127
Common Foreign and Security Policy
(CFSP)
108 (25) (40) 43 406 (352) – 54 96
Overseas Countries and Territories (OCT) 129 (0) (27) 102 72 (27) – 44 147
MFA+ – – – – 574 (421) – 153 153
Other actions 28 (0) (28) 0 80 (23) – 57 57
Pilot projects and prep. actions 0 (0) (0) 0 – – – – 0
Actions under prerogatives of 153 (9) (57) 87 95 (31) – 64 151
Annual accounts of the European Union 2024
186
EUR million
Commitments outstanding at the end of previous year Commitments of the current year
Total
commitm.
outstanding
at the end of
the year
Programme
Commitm.
carried
forward from
previous
year
Decommitm./
Revaluations/
Cancellations
Payments
Commitm.
outstanding
at year-end
Commitm.
made during
the year
Payments
Cancellation
of commitm.
which cannot
be carried
over
Commitm.
outstanding
at year-end
1 2 3 4=1+2+3 5 6 7 8=5+6+7 9=4+8
Commission
Pre-Accession Assistance (IPA III) 7 684 (95) (1 899) 5 689 2 146 (402) – 1 744 7 434
Facility for Western Balkans – – – – 400 (1) – 399 399
Pilot projects and prep. actions 0 0 0 0 0 0 0 0 0
Total Heading 6: Neighbourhood and the
World
39 987 (779) (10 433) 28 776 18 283 (4 962) (0) 13 321 42 097
7 Staff Pensions – – – – 2 862 (2 862) – – –
(Pensions former Members) EP – – – – 15 (15) – – –
(Pensions former Members) ECC – – – – 1 (1) – – –
(Pensions former Members) Commission – – – – 9 (9) – – –
(Pensions former Members) CJEU – – – – 15 (15) – – –
(Pensions former Members) ECA – – – – 7 (7) – – –
(Pensions former Members) Ombudsman – – – – 0 (0) – – –
(Pensions former Members) EDPS – – – – 0 (0) – – –
European schools 1 – (1) – 269 (265) – 4 4
Remuneration statutory staff 0 (0) (0) – 2 957 (2 957) (0) 0 0
Remuneration external staff 33 (4) (29) 0 310 (287) (0) 23 23
Members - Salaries and allowances 0 (0) (0) – 17 (16) – 1 1
Members - Temporary allowances – – – – 1 (0) (0) – –
Recruitment costs 2 (0) (1) – 31 (27) – 3 3
Termination of service – – – – 7 (7) (0) – –
Training costs 11 (1) (10) – 22 (10) – 12 12
Social and Mobility 13 (3) (10) 0 38 (26) – 12 12
Information and comm. technology 172 (1) (171) – 420 (255) – 166 166
Rents and purchases 7 (0) (7) – 639 (608) – 31 31
Linked to buildings 63 (5) (58) – 129 (80) – 49 49
Security 38 (3) (36) – 83 (51) – 32 32
Mission and representation 11 (3) (8) – 55 (45) – 10 10
Annual accounts of the European Union 2024
187
EUR million
Commitments outstanding at the end of previous year Commitments of the current year
Total
commitm.
outstanding
at the end of
the year
Programme
Commitm.
carried
forward from
previous
year
Decommitm./
Revaluations/
Cancellations
Payments
Commitm.
outstanding
at year-end
Commitm.
made during
the year
Payments
Cancellation
of commitm.
which cannot
be carried
over
Commitm.
outstanding
at year-end
1 2 3 4=1+2+3 5 6 7 8=5+6+7 9=4+8
Meetings, committees, conference 7 (3) (3) – 16 (10) – 6 6
Official journal 1 (0) (1) – 3 (2) – 1 1
Publications 6 (0) (6) – 14 (8) – 7 7
Acquisition of information 2 (0) (2) – 7 (5) – 2 2
Studies and investigations 5 (0) (5) – 6 (1) – 5 5
General equipment, vehicle, furniture 12 (0) (12) – 23 (12) – 11 11
Linguistic external services 2 (0) (2) – 63 (61) – 2 2
Other administrative expenditure 10 (1) (9) – 41 (29) – 12 12
Pilot projects and prep. actions 0 0 0 0 0 0 0 0 0
Administrative expenditure of Other
Institutions
608 (51) (557) – 5 291 (4 668) (1) 623 623
Total Heading 7: European Public
Administration
1 004 (76) (927) 0 13 351 (12 339) (2) 1 011 1 011
O Innovation Fund (IF) 6 443 (111) (261) 6 071 603 (31) – 572 6 643
Ukraine Facility – – – – 4 887 (3 637) (0) 1 250 1 250
Other actions 4 (3) (0) 1 62 (57) – 5 6
Total Heading O: Outside MFF 6 447 (114) (261) 6 072 5 552 (3 726) (0) 1 827 7 899
S Solidarity and Emergency Aid (SEAR) 0 0 0 0 0 0 0 0 0
European Solidarity Reserve – – – – 1 234 (1 234) – – –
Emergency Aid Reserve – – – – – – – – –
European Globalisation Adjustment (EGF) 0 (0) (0) – 8 (8) – 0 0
Brexit Adjustment Reserve 482 – (429) 53 304 (304) – – 53
Total Heading S: Solidarity mechanisms
within and outside the Union (Special
instruments)
482 (0) (429) 53 1 546 (1 546) – 0 53
Total 543 003 (2 288) (159 765) 380 950 213 661 (87 223) (10) 126 428 507 378
Annual accounts of the European Union 2024
188
6.11. DETAILED MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN
EUR million
Programme <2018 2018 2019 2020 2021 2022 2023 2024 Total
1 Horizon Europe 346 434 880 1 964 2 704 3 826 5 777 12 715 28 646
Euratom 24 5 6 14 16 17 21 131 234
Thermonuclear Experimental Reactor (ITER) – – – – – 610 482 356 1 449
Other actions – – 0 2 5 4 61 191 263
Pilot projects and prep. actions 0 1 0 0 2 9 18 20 50
InvestEU Fund 182 74 102 133 60 1 203 2 571 337 4 663
CEF - Transport 83 71 984 1 289 696 403 797 1 767 6 089
CEF - Energy 274 43 659 902 381 551 242 881 3 934
CEF - Digital 1 0 1 7 102 175 188 83 556
Digital Europe – – – 0 281 356 429 1 285 2 351
Decentralised agencies – – – – – – – 36 36
Other actions – – – – – – 1 60 61
Pilot projects and prep. actions – – 0 10 5 4 3 4 26
Actions under prerogatives of Commission – – – 0 1 2 9 23 36
Single Market 49 9 25 27 32 97 169 506 914
EU Anti-Fraud 0 – 0 1 5 5 7 16 34
Taxation – – 0 0 3 4 7 30 44
Customs – 0 0 0 3 13 31 101 148
Decentralised agencies – – – – – – – 0 0
Other actions – – – – 0 – 0 5 5
Pilot projects and prep. actions – – – 1 0 8 5 11 25
European Space Programme 0 2 5 144 12 28 267 1 026 1 483
Decentralised agencies – – – – – – – 17 17
Pilot projects & preparatory actions – – – – – – – 17 17
Union Secure Connectivity – – – – – – – 83 83
Total Heading 1: Single Market, Innovation and Digital 957 639 2 663 4 496 4 309 7 314 11 086 19 700 51 164
2 Regional Development (ERDF) 686 1 0 26 77 506 159 103 733 105 188
Cohesion Fund 84 0 0 0 0 17 18 15 928 16 048
Annual accounts of the European Union 2024
189
EUR million
Programme <2018 2018 2019 2020 2021 2022 2023 2024 Total
Cohesion Fund contrib. to CEF-Transport 523 261 547 1 163 450 462 401 1 596 5 402
Pilot projects and prep. actions 0 1 – 0 0 1 – 1 4
European Social Fund Plus (ESF+) 279 0 2 1 6 15 45 47 180 47 528
Support to Turkish-Cypriot Community 0 0 1 5 9 16 27 36 95
European Recovery and Resilience – – 0 0 2 298 39 792 51 627 67 853 161 570
Pericles IV – – – – – – 0 0 0
EU Recovery – – – – – – – 1 865 1 865
RescEU – – 3 98 75 264 595 157 1 193
EU4Health 1 0 5 6 122 346 366 661 1 507
Emergency support within the Union (ESI) – – – 0 9 19 – – 28
Decentralised agencies 0 0 0 0 2 11 16 19 50
Pilot projects and prep. actions 0 – – – – – – – 0
Actions under prerogatives of Commission – – – – – 0 1 9 10
Employment and Social Innovation 3 1 8 10 12 22 52 78 185
Erasmus+ 0 1 3 115 216 439 584 893 2 251
European Solidarity Corps (ESC) 0 – 5 33 21 20 18 52 149
Creative Europe – 0 2 5 18 75 101 153 354
Justice 4 2 3 2 5 10 10 18 53
Rights and Values 5 3 3 3 9 45 74 145 288
Decentralised agencies – – – 0 19 9 13 12 53
Other actions 0 – 0 0 – 2 3 7 13
Pilot projects and prep. actions 0 1 1 4 3 8 15 26 58
Actions under prerogatives of Commission 1 3 5 6 6 15 33 128 197
Total Heading 2: Cohesion, Resilience and Values 1 587 273 588 1 478 3 357 42 094 54 161 240 550 344 088
3 Agricultural Guarantees – 8 13 18 31 59 91 150 371
Other progr. of Natural Resources and Environment 0 0 0 0 0 0 0 0 0
Agricultural Fund for Rural Development 0 – 0 6 0 2 995 9 32 507 35 517
Maritime and Fisheries 22 0 1 3 11 19 42 3 242 3 341
Fisheries (SFPA and RFMO) – – – – – 0 8 30 38
Decentralised agencies – – – – – – – – –
Other actions 0 0 0 0 0 0 0 0 0
Annual accounts of the European Union 2024
190
EUR million
Programme <2018 2018 2019 2020 2021 2022 2023 2024 Total
Pilot projects and prep. actions – – – – – 1 1 8 10
Environment and Climate (LIFE) 113 193 164 194 329 457 489 753 2 691
Just Transition Fund – – – – 0 1 4 8 760 8 765
Loan facility under Just Transition Mechanism – – – – – 10 11 83 104
Decentralised agencies – – – – – – – – –
Pilot projects and prep. actions 0 0 – 1 0 3 4 6 15
Specific actions – – – – – – 3 13 16
Total Heading 3: Natural Resources and Environment 136 201 178 222 372 3 544 663 45 551 50 867
4 Asylum, Migration and Integration 20 2 18 235 21 95 725 1 746 2 862
Decentralised agencies – – – – – 13 – – 13
Pilot projects and prep. actions 0 0 0 0 0 0 0 0 0
Border Mngmt. (IBMF) - Border mngmt and visa 20 0 0 186 46 140 655 1 168 2 215
Border Mngmt. (IBMF) - Customs equipment – – – – 72 64 70 98 305
Decentralised agencies – – – – – – 130 230 359
Total Heading 4: Migration and Border Management 40 3 18 421 139 313 1 580 3 241 5 754
5 Internal Security Fund (ISF) 5 5 3 32 8 27 171 385 636
Nuclear decommissioning 3 1 13 65 42 99 41 67 331
Nuclear Safety and decommissioning 10 39 44 74 39 12 27 50 296
Decentralised agencies – – – – – – – 6 6
Pilot projects and prep. actions – – – 1 – – – – 1
Actions under prerogatives of Commission 0 – 0 1 1 2 5 13 22
European Defence (Research) – – – – 110 160 178 339 788
European Defence (Non Research) – – 14 14 232 286 322 589 1 458
Military Mobility – – – – 74 26 57 134 291
Defence instrument on common procurement – – – – – – – 259 259
Defence Industrial Reinforcement instrument – – – – – – 107 235 343
European Defence industry Programme 0 0 0 0 0 0 0 0 0
Pilot projects and prep. actions – 0 – – – – – – 0
Union Secure Connectivity – – – – – – – 16 16
Total Heading 5: Security and Defence 18 46 74 188 506 612 909 2 094 4 445
6 Neighbourhood, Developm. and Intl. Cooperation 1 044 825 993 1 407 2 985 6 785 8 133 10 224 32 397
Annual accounts of the European Union 2024
191
EUR million
Programme <2018 2018 2019 2020 2021 2022 2023 2024 Total
Instrument for Nuclear Safety (EINS) 2 4 8 11 23 20 34 34 137
Humanitarian Aid (HUMA) – – 6 7 28 127 333 627 1 127
Common Foreign and Security Policy (CFSP) 1 – 12 0 7 6 18 54 96
Overseas Countries and Territories (OCT) – – 1 – 2 46 53 44 147
MFA+ – – – – – – – 153 153
Other actions – – – – – – 0 57 57
Pilot projects and prep. actions 0 – – – – – – – 0
Actions under prerogatives of Commission – 0 0 4 13 26 42 66 151
Pre-Accession Assistance (IPA III) 290 320 630 519 998 1 342 1 266 2 069 7 434
Facility for Western Balkans – – – – – – – 399 399
Pilot projects and prep. actions 0 0 0 0 0 0 0 0 0
Total Heading 6: Neighbourhood and the World 1 336 1 149 1 651 1 948 4 056 8 352 9 878 13 726 42 097
7 Staff Pensions – – – – – – – – –
(Pensions former Members) EP – – – – – – – – –
(Pensions former Members) ECC – – – – – – – – –
(Pensions former Members) Commission – – – – – – – – –
(Pensions former Members) CJEU – – – – – – – – –
(Pensions former Members) ECA – – – – – – – – –
(Pensions former Members) Ombudsman – – – – – – – – –
(Pensions former Members) EDPS – – – – – – – – –
European schools – – – – – – – 4 4
Remuneration statutory staff – – – – – – – 0 0
Remuneration external staff – – – – – – 0 23 23
Members - Salaries and allowances – – – – – – – 1 1
Members - Temporary allowances – – – – – – – – –
Recruitment costs – – – – – – – 3 3
Termination of service – – – – – – – – –
Training costs – – – – – – – 12 12
Social and Mobility – – – – – 0 0 12 12
Information and comm. technology – – – – – – – 166 166
Rents and purchases – – – – – – – 31 31
Annual accounts of the European Union 2024
192
EUR million
Programme <2018 2018 2019 2020 2021 2022 2023 2024 Total
Linked to buildings – – – – – – – 49 49
Security – – – – – – – 32 32
Mission and representation – – – – – – – 10 10
Meetings, committees, conference – – – – – – – 6 6
Official journal – – – – – – – 1 1
Publications – – – – – – – 7 7
Acquisition of information – – – – – – – 2 2
Studies and investigations – – – – – – – 5 5
General equipment, vehicle, furniture – – – – – – – 11 11
Linguistic external services – – – – – – – 2 2
Other administrative expenditure – – – – – – – 12 12
Pilot projects and prep. actions 0 0 0 0 0 0 0 0 0
Administrative expenditure of Other Institutions 0 0 0 0 0 0 0 623 623
Total Heading 7: European Public Administration – – – – – 0 0 1 011 1 011
O Innovation Fund (IF) – – – – 65 2 586 3 420 572 6 643
Ukraine Facility – – – – – – – 1 250 1 250
Other actions – – – – – – 1 5 6
Total Heading O: Outside MFF – – – – 65 2 586 3 421 1 827 7 899
S Solidarity and Emergency Aid (SEAR) 0 0 0 0 0 0 0 0 0
European Solidarity Reserve – – – – – – – – –
Emergency Aid Reserve – – – – – – – – –
European Globalisation Adjustment (EGF) – – – – – – – 0 0
Brexit Adjustment Reserve – – – – – – 53 – 53
Total Heading S: Solidarity mechanisms within and outside the
Union (Special instruments)
– – – – – – 53 0 53
Total 4 074 2 312 5 172 8 752 12 804 64 814 81 750 327 700 507 378
As a result from re-allocation of commitments in the framework of the migration to a new accounting system (SUMMA) a shift of outstanding amount (201 274 EUR million)
between years has occurred. The overall amount of outstanding commitments remains unchanged.
Annual accounts of the European Union 2024
193
6.12. DETAILED MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE
EUR million
From budget appropriations From assigned revenue appropriations Total
commitm.
outstanding
at the end of
2024
Heading
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
1 2 3 4
5=1+2+3-
4
6 7 8 9
10=6+7+
8-9
11=5+10
1 Horizon Europe 23 506 (367) 12 994 12 039 24 094 4 433 (204) 2 087 1 765 4 551 28 646
Euratom 304 (1) 280 369 214 54 (4) 7 36 21 234
Thermonuclear Experimental
Reactor (ITER)
1 570 (2) 436 562 1 443 6 – 1 1 6 1 449
Other actions 0 0 – – – 135 (8) 222 86 263 263
Pilot projects and prep. actions 48 (1) 24 21 50 0 0 0 0 0 50
InvestEU Fund 2 253 (31) 348 256 2 314 3 582 (0) 1 603 2 834 2 350 4 663
CEF - Transport 6 442 (85) 1 758 2 087 6 028 61 (3) 23 20 61 6 089
CEF - Energy 3 819 (42) 885 775 3 886 54 – – 6 48 3 934
CEF - Digital 647 (39) 87 142 553 3 (0) 1 1 3 556
Digital Europe 2 070 4 1 264 1 042 2 296 46 (7) 49 33 55 2 351
Decentralised agencies 39 – 217 220 36 – – 9 9 – 36
Other actions 2 (0) 1 1 1 – – 69 10 60 61
Pilot projects and prep. actions 34 (2) 14 20 26 0 0 0 0 0 26
Actions under prerogatives of
Commission
31 (1) 24 23 31 5 (0) 4 4 5 36
Single Market 917 (55) 604 583 882 32 (3) 22 20 32 914
EU Anti-Fraud 29 (0) 24 20 33 0 (0) 1 0 1 34
Taxation 40 (1) 38 35 43 2 – 0 0 1 44
Customs 141 (2) 136 129 146 4 (0) 1 4 1 148
Decentralised agencies 0 (0) 132 132 0 – – 10 10 0 0
Other actions 7 (0) 6 8 5 0 – 0 0 – 5
Pilot projects and prep. actions 21 (1) 12 7 25 0 0 0 0 0 25
European Space Programme 1 223 (2) 2 088 2 226 1 083 190 (2) 265 54 399 1 483
Decentralised agencies 18 – 79 84 14 2 – 3 2 3 17
Pilot projects & preparatory actions – – 17 – 17 0 0 0 0 0 17
Annual accounts of the European Union 2024
194
EUR million
From budget appropriations From assigned revenue appropriations Total
commitm.
outstanding
at the end of
2024
Heading
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
1 2 3 4
5=1+2+3-
4
6 7 8 9
10=6+7+
8-9
11=5+10
Union Secure Connectivity 156 (0) 117 190 83 0 0 0 0 0 83
Total Heading 1: Single Market,
Innovation and Digital
43 318 (629) 21 584 20 969 43 304 8 608 (230) 4 378 4 895 7 860 51 164
2 Regional Development (ERDF) 74 573 443 38 668 13 263 100 420 16 496 (530) 4 798 15 997 4 768 105 188
Cohesion Fund 11 413 (3) 6 600 2 352 15 658 1 048 (17) 1 095 1 736 390 16 048
Cohesion Fund contrib. to CEF-
Transport
6 066 (40) 1 606 2 246 5 387 13 (0) 2 0 15 5 402
Pilot projects and prep. actions 3 (0) 4 3 4 0 0 0 0 0 4
European Social Fund Plus (ESF+) 31 288 582 16 731 4 887 43 714 13 963 (597) 1 913 11 465 3 814 47 528
Support to Turkish-Cypriot
Community
99 (3) 34 40 91 1 (0) 7 3 5 95
European Recovery and Resilience 157 (10) 123 101 169 214 361 (3) 2 230 55 187 161 401 161 570
Pericles IV 1 (0) 1 1 0 – – 0 0 0 0
EU Recovery 649 (0) 3 340 2 125 1 863 2 (0) 2 3 2 1 865
RescEU 540 (10) 240 355 415 1 166 (1) 14 402 778 1 193
EU4Health 1 274 (15) 753 546 1 466 27 (1) 41 27 41 1 507
Emergency support within the
Union (ESI)
21 (3) – 8 9 19 – – 0 19 28
Decentralised agencies 42 (0) 263 256 49 0 – 38 38 1 50
Pilot projects and prep. actions 0 – – – 0 0 0 0 0 0 0
Actions under prerogatives of
Commission
10 (1) 12 12 10 0 (0) 0 0 0 10
Employment and Social Innovation 174 (11) 93 83 173 9 (0) 7 4 12 185
Erasmus+ 1 863 (55) 3 796 3 532 2 072 221 (9) 477 509 179 2 251
European Solidarity Corps (ESC) 153 (23) 144 135 138 14 (4) 16 15 10 149
Creative Europe 414 (6) 335 402 341 14 (1) 15 15 13 354
Justice 63 (7) 42 47 51 4 (0) 1 1 3 53
Rights and Values 271 (5) 219 198 286 1 (0) 1 0 1 288
Decentralised agencies 48 (0) 303 299 52 1 (0) 5 5 1 53
Other actions 13 (2) 8 8 11 2 (0) 0 1 1 13
Annual accounts of the European Union 2024
195
EUR million
From budget appropriations From assigned revenue appropriations Total
commitm.
outstanding
at the end of
2024
Heading
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
1 2 3 4
5=1+2+3-
4
6 7 8 9
10=6+7+
8-9
11=5+10
Pilot projects and prep. actions 65 (2) 26 31 58 0 – 0 0 0 58
Actions under prerogatives of
Commission
192 (4) 183 181 190 3 (0) 6 3 7 197
Total Heading 2: Cohesion,
Resilience and Values
129 392 825 73 525 31 113 172 629 247 365 (1 163) 10 668 85 412 171 459 344 088
3 Agricultural Guarantees 358 (35) 40 465 40 420 368 0 – 345 342 3 371
Agricultural Fund for Rural
Development
33 157 (61) 13 155 13 997 32 254 4 734 (0) 1 1 471 3 263 35 517
Maritime and Fisheries 2 692 231 1 070 760 3 233 607 (234) 127 392 108 3 341
Fisheries (SFPA and RFMO) 23 (1) 130 114 38 0 0 0 0 0 38
Decentralised agencies – – 30 30 – – – 1 1 – –
Pilot projects and prep. actions 4 (0) 8 3 10 0 0 0 0 0 10
Environment and Climate (LIFE) 2 538 (24) 768 597 2 684 9 (0) 4 6 7 2 691
Just Transition Fund 2 773 (0) 1 479 6 4 245 10 504 (0) 160 6 144 4 520 8 765
Loan facility under Just Transition
Mechanism
40 – 50 60 29 17 – 76 19 75 104
Decentralised agencies – – 66 66 – – – 8 8 – –
Pilot projects and prep. actions 18 (0) 6 9 15 0 0 0 0 0 15
Specific actions 4 (0) 16 4 16 0 0 0 0 0 16
Total Heading 3: Natural Resources
and Environment
41 606 109 57 243 56 066 42 891 15 871 (234) 721 8 382 7 976 50 867
4 Asylum, Migration and Integration 2 709 8 1 502 1 363 2 856 11 (8) 6 3 6 2 862
Decentralised agencies 13 – 152 152 13 – – 13 13 – 13
Border Mngmt. (IBMF) - Border
mngmt and visa
1 637 17 1 004 564 2 094 161 (17) 53 75 121 2 215
Border Mngmt. (IBMF) - Customs
equipment
278 (0) 144 117 305 0 0 0 0 0 305
Decentralised agencies 312 – 1 090 1 043 359 – – 76 76 – 359
Total Heading 4: Migration and
Border Management
4 949 24 3 892 3 239 5 627 172 (25) 147 166 127 5 754
5 Internal Security Fund (ISF) 518 2 323 208 635 6 (2) 1 3 1 636
Nuclear decommissioning 405 (0) 67 142 331 0 0 0 0 0 331
Annual accounts of the European Union 2024
196
EUR million
From budget appropriations From assigned revenue appropriations Total
commitm.
outstanding
at the end of
2024
Heading
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
1 2 3 4
5=1+2+3-
4
6 7 8 9
10=6+7+
8-9
11=5+10
Nuclear Safety and
decommissioning
312 (1) 60 76 296 0 – 0 0 0 296
Decentralised agencies – – 252 247 6 – – 11 11 – 6
Pilot projects and prep. actions 1 – – – 1 0 0 0 0 0 1
Actions under prerogatives of
Commission
26 (2) 32 35 22 0 – – 0 – 22
European Defence (Research) 631 (0) 344 212 763 15 (0) 12 2 25 788
European Defence (Non Research) 1 290 (0) 680 529 1 441 33 – 23 39 16 1 458
Military Mobility 376 (1) 251 335 291 0 0 0 0 0 291
Defence instrument on common
procurement
– – 250 – 250 – – 9 0 9 259
Defence Industrial Reinforcement
instrument
157 (0) 343 172 327 – – 16 1 15 343
Pilot projects and prep. actions 0 – – – 0 0 0 0 0 0 0
Union Secure Connectivity 30 – 96 110 16 0 0 0 0 0 16
Total Heading 5: Security and
Defence
3 748 (2) 2 699 2 066 4 379 55 (2) 71 57 66 4 445
6
Neighbourhood, Developm. and
Intl. Cooperation
30 342 (610) 11 432 9 352 31 811 340 (29) 525 250 586 32 397
Instrument for Nuclear Safety
(EINS)
137 (5) 42 40 133 4 – 1 1 3 137
Humanitarian Aid (HUMA) 1 047 (6) 2 495 2 422 1 115 15 (0) 17 20 12 1 127
Common Foreign and Security
Policy (CFSP)
94 (23) 385 379 78 13 (2) 21 14 19 96
Overseas Countries and Territories
(OCT)
129 (0) 72 55 147 0 0 0 0 0 147
MFA+ – – 5 5 – – – 569 416 153 153
Other actions 28 (0) 79 50 57 – – 0 0 – 57
Pilot projects and prep. actions 0 (0) – 0 0 0 0 0 0 0 0
Actions under prerogatives of
Commission
152 (9) 95 88 151 0 (0) 0 0 0 151
Pre-Accession Assistance (IPA III) 7 415 (48) 2 063 2 227 7 203 269 (47) 83 74 231 7 434
Facility for Western Balkans – – 400 1 399 0 0 0 0 0 399
Total Heading 6: Neighbourhood 39 345 (701) 17 067 14 618 41 093 642 (78) 1 217 777 1 004 42 097
Annual accounts of the European Union 2024
197
EUR million
From budget appropriations From assigned revenue appropriations Total
commitm.
outstanding
at the end of
2024
Heading
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
1 2 3 4
5=1+2+3-
4
6 7 8 9
10=6+7+
8-9
11=5+10
and the World
7 Staff Pensions – – 2 589 2 589 (0) – – 273 273 0 (0)
(Pensions former Members) EP – – 15 15 0 0 0 0 0 0 0
(Pensions former Members) ECC – – 1 1 (0) 0 0 0 0 0 (0)
(Pensions former Members)
Commission
– – 9 9 (0) 0 0 0 0 0 (0)
(Pensions former Members) CJEU – – 15 15 – 0 0 0 0 0 –
(Pensions former Members) ECA – – 7 7 0 0 0 0 0 0 0
(Pensions former Members)
Ombudsman
– – 0 0 – 0 0 0 0 0 –
(Pensions former Members) EDPS – – 0 0 – 0 0 0 0 0 –
European schools 0 (0) 246 246 0 1 (0) 23 20 4 4
Remuneration statutory staff 0 (0) 2 897 2 897 0 – – 60 60 – 0
Remuneration external staff 32 (4) 265 272 21 1 (0) 45 44 2 23
Members - Salaries and allowances 0 (0) 17 16 1 – – 0 0 0 1
Members - Temporary allowances – (0) 1 0 0 0 0 0 0 0 0
Recruitment costs 2 (0) 30 28 3 0 (0) 0 0 0 3
Termination of service – (0) 7 7 – 0 0 0 0 0 –
Training costs 8 (1) 17 15 10 3 (0) 4 4 2 12
Social and Mobility 7 (1) 23 22 7 6 (2) 15 14 5 12
Information and comm. technology 129 (1) 287 295 120 42 (0) 134 130 46 166
Rents and purchases 5 (0) 326 300 30 2 (0) 314 315 1 31
Linked to buildings 57 (5) 107 115 44 6 (0) 22 23 5 49
Security 32 (2) 74 79 25 6 (0) 9 8 7 32
Mission and representation 11 (3) 54 52 10 0 (0) 2 2 0 10
Meetings, committees, conference 6 (3) 15 13 5 1 (0) 1 1 1 6
Official journal 1 (0) 3 2 1 – – 0 – 0 1
Publications 5 (0) 12 11 5 2 (0) 3 3 1 7
Annual accounts of the European Union 2024
198
EUR million
From budget appropriations From assigned revenue appropriations Total
commitm.
outstanding
at the end of
2024
Heading
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
Commitm.
carried
forward
from 2023
Adjust-
ments
Commitm.
made
Payments
made
Amount
remaining
to be
settled
1 2 3 4
5=1+2+3-
4
6 7 8 9
10=6+7+
8-9
11=5+10
Acquisition of information 2 (0) 7 6 2 0 – 0 0 – 2
Studies and investigations 5 (0) 6 5 5 0 – 0 0 0 5
General equipment, vehicle,
furniture
11 (0) 16 18 9 1 (0) 6 6 2 11
Linguistic external services 2 (0) 27 27 2 1 (0) 36 36 1 2
Other administrative expenditure 4 (0) 19 18 5 6 (0) 21 20 7 12
Administrative expenditure of
Other Institutions
567 (10) 4 912 4 886 582 42 (42) 379 338 40 623
Total Heading 7: European Public
Administration
886 (32) 12 004 11 969 888 118 (46) 1 348 1 297 123 1 011
O Innovation Fund (IF) 0 0 – – – 6 443 (111) 603 292 6 643 6 643
Ukraine Facility – (0) 4 737 3 634 1 103 – – 150 3 147 1 250
Other actions 0 0 – – – 4 (3) 62 57 6 6
Total Heading O: Outside MFF – (0) 4 737 3 634 1 103 6 447 (114) 815 353 6 795 7 899
S European Solidarity Reserve – – 1 234 1 234 – 0 0 0 0 0 –
European Globalisation Adjustment
(EGF)
0 (0) 8 8 0 0 0 0 0 0 0
Brexit Adjustment Reserve 321 – 7 275 53 161 – 297 458 – 53
Total Heading S: Solidarity
mechanisms within and outside the
Union (Special instruments)
321 (0) 1 249 1 517 53 161 – 297 458 – 53
Total 263 564 (405) 194 000 145 192 311 967 279 440 (1 893) 19 661 101 797 195 410 507 378
Annual accounts of the European Union 2024
199
IMPLEMENTATION OF THE BUDGET BY INSTITUTION
7.1. IMPLEMENTATION OF BUDGET REVENUE
EUR million
Income appropriations Entitlements established Revenue
Receipts as
% of budget
Out-
standing
Institution
Initial adopted
budget
Final adopted
budget
Current
year
Carried
over
Total
On entitle-
ments of
current year
On entitle-
ments
carried over
Total
1 2 3 4 5=3+4 6 7 8=6+7 9=8/2 10=5-8
European Parliament 222 222 281 12 293 279 3 282 127 % 11
European Council and Council 72 72 99 1 100 98 1 99 137 % 1
Commission 142 141 149 255 246 702 19 281 265 983 239 802 9 925 249 727 167 % 16 256
Court of Justice 73 73 74 0 74 74 0 74 101 % 0
Court of Auditors 31 31 30 0 30 30 0 30 97 % 0
Economic and Social Committee 17 17 22 0 22 22 0 22 134 % 0
Committee of the Regions 14 14 16 0 16 16 0 16 117 % 0
Ombudsman 2 2 2 0 2 2 0 2 107 % 0
European Data Protection Supervisor 2 2 2 0 2 2 0 2 102 % –
European External Action Service 57 57 356 0 356 356 0 356 626 % 0
Total 142 630 149 744 247 584 19 295 266 879 240 680 9 929 250 609 167 % 16 270
The consolidated reports on the implementation of the general budget of the EU include, as in previous years, the budget implementation of all Institutions
since within the EU budget a separate budget for each Institution is established.
The budget and implementation of Agencies are not consolidated within the EU budget and are not included in the EU budget reports. The Commission subsidy
paid to the agencies however is part of the EU budget. In this budgetary part of the annual accounts, only the subsidy paid from the Commission budget to the
Agencies is taken into consideration.
Concerning the EEAS, it should be noted that, in addition to its own budget, it also receives contributions from the Commission of EUR 236.1 million (2023:
EUR 240.5 million) and the EDF legacy and the Trust Funds of EUR 19.3 million (2023: EUR 18.7 million). These contributions cover the costs of the
Commission's staff in the delegations financed under the EDF and the Trust Funds, including assigned revenue generated during the year from these
contributions.
Annual accounts of the European Union 2024
200
7.2. IMPLEMENTATION OF COMMITMENT APPROPRIATIONS
EUR million
Total
appropriat.
available
Commitments made
Appropriations carried over to
2025
Appropriations lapsing
Institution
from final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from final
adopted
budget
from
assigned
revenue
Total
from final
adopted
budget
from
carry-
overs
from
assign
ed
revenu
e
Total
1 2 3 4 5=2+3+4 6=5/1 7 8 9=7+8 10 11 12
13=10+
11+12
European Parliament 2 469 2 375 0 49 2 424 98 % 0 37 37 8 0 0 8
European Council
and Council
732 653 0 32 684 93 % 0 23 23 24 0 0 24
Commission 222 217 188 153 936 19 282 208 370 94 % 1 365 10 969 12 334 1 121 62 330 1 513
Court of Justice 506 499 0 1 500 99 % 0 1 1 5 0 0 5
Court of Auditors 186 181 0 0 182 98 % 0 0 0 4 – 0 4
Economic and Social
Committee
172 164 0 5 169 98 % 0 2 2 1 0 0 1
Committee of
Regions
126 123 0 1 124 99 % 0 1 1 0 0 – 0
Ombudsman 14 14 0 – 14 98 % 0 – – 0 0 – 0
European Data-
protection
Supervisor
24 23 0 – 23 96 % 0 0 0 1 0 – 1
European External
Action Service
1 240 880 1 290 1 171 94 % 0 68 68 0 – 0 0
Total 227 687 193 064 937 19 661 213 661 94 % 1 365 11 103 12 468 1 166 62 330 1 558
Annual accounts of the European Union 2024
201
7.3. IMPLEMENTATION OF PAYMENT APPROPRIATIONS
EUR million
Total
approp.
available
Payments made
Appropriations carried over to
2025
Appropriations lapsing
Institution
from
final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total %
from final
adopted
budget
from
assigned
revenue
Total
from
final
adopted
budget
from
carry-
overs
from
assigned
revenue
Total
1 2 3 4 5=2+3+4 6=5/1 7 8 9=7+8 10 11 12 13
European Parliament 2 825 2 038 322 47 2 407 85 % 337 46 383 8 26 1 35
European Council and
Council
819 574 78 32 684 84 % 79 24 103 24 8 – 32
Commission 269 678 141 805 2 122 97 837 241 764 90 % 3 266 24 509 27 775 33 99 7 140
Court of Justice 537 467 27 1 494 92 % 32 1 33 5 4 – 9
Court of Auditors 196 171 9 0 181 92 % 10 0 10 4 0 – 5
Economic and Social
Committee
186 153 12 4 168 90 % 10 4 14 1 2 – 3
Committee of Regions 137 113 10 1 124 91 % 10 2 11 0 1 – 1
Ombudsman 14 13 0 – 13 94 % 0 – 0 0 0 – 0
European Data-
protection Supervisor
27 21 2 – 23 84 % 3 0 3 1 1 – 2
European External
Action Service
1 350 778 98 253 1 129 84 % 102 106 208 0 13 – 13
Total 275 769 146 134 2 680 98 175 246 988 90 % 3 848 24 692 28 540 78 154 8 240
Annual accounts of the European Union 2024
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IMPLEMENTATION OF THE AGENCIES' BUDGETS
The agencies’ revenue and expenditure, as shown in the reports 8.1 and 8.2 below, are not consolidated
as such within the EU budget. In this budgetary part of the annual accounts, only the subsidy paid from
the Commission budget to the Agencies is taken into consideration.
The EU budget implementation reports include the subsidy paid from the EU budget to the agencies as
commitment and payment appropriations, when applicable.
The agencies’ reports below show an overview of the Agencies, both decentralised (also known as
traditional agencies) and executive agencies, and of their revenue (8.1) and expenditure (8.2).
Other sources of revenue and their related expenditure are not added into the EU budget accounts. Each
agency presents its own set of annual accounts.
8.1. BUDGET REVENUE
EUR million
Agency
Funding
MFF
heading
Final
adopted
budget
Revenue
received
Agency for the Cooperation of Energy Regulators 1 35 35
Agency for the Operational Management of Large-Scale IT Systems 4 257 287
Body of European Regulators for Electronic Communications 1 8 8
Community Plant Variety Office N/A 23 21
European Agency for Safety and Health at Work 2b 18 17
European Asylum Support Office 4 182 185
European Aviation Safety Agency 1 243 217
European Banking Authority 1 56 57
European Border and Coast Guard Agency 4 922 927
European Centre for Disease Prevention and Control 2b 93 102
European Centre for the Development of Vocational Training 2b 20 21
European Chemicals Agency 1 127 131
European Climate, Infrastructure and Environment Executive Agency 1, 2a, 3, 5 69 70
European Education and Culture Executive Agency 2b, 6 70 70
European Environment Agency 3 103 98
European Fisheries Control Agency 3 31 32
European Food Safety Authority 2b 157 155
European Foundation for the Improvement of Living and Working Conditions 2b 24 25
European Health and Digital Executive Agency 1, 2b 56 56
European Innovation Council and SMEs Executive Agency 1, 2a 50 49
European Institute for Gender Equality 2b 9 9
European Institute of Innovation and Technology 1 418 466
European Insurance and Occupational Pensions Authority 1 37 38
European Labour Authority 2b 40 39
European Maritime Safety Agency 1 93 122
European Medicines Agency 2b 481 492
European Monitoring Centre for Drugs and Drug Addiction 5 35 30
European Public Prosecutor's Office 2b 76 76
European Research Council Executive Agency 1 67 67
European Research Executive Agency 1, 3 112 112
European Securities and Markets Authority 1 75 76
European Training Foundation 2b 28 29
European Union Agency for Criminal Justice Cooperation 2b 65 71
European Union Agency for Cybersecurity 1 26 45
European Union Agency for Law Enforcement Cooperation 5 222 232
European Union Agency for Law Enforcement Training 5 13 32
European Union Agency for Railways 1 32 44
European Union Agency for the Space Programme 1 85 1 342
European Union Fundamental Rights Agency 2b 27 28
European Union Intellectual Property Office N/A 315 323
Fusion for Energy Joint Undertaking 1 625 662
Translation Centre for the Bodies of the European Union 7 45 37
Total 5 470 6 937
Annual accounts of the European Union 2024
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EUR million
Type of agencies revenue
Amounts
received
Commission subsidy 4 854
Fee income 984
Other income 1 098
Total 6 937
8.2. COMMITMENT AND PAYMENT APPROPRIATIONS BY
AGENCY
EUR million
Commitment
appropriations
Payment
appropriations
Agency
Total
appropr.
available
Commit.
made
Total
appropr.
available
Payments
made
Agency for the Cooperation of Energy Regulators 35 35 43 33
Agency for the Operational Management of Large-Scale IT
Systems
407 365 380 277
Body of European Regulators for Electronic Communications 8 8 9 8
Community Plant Variety Office 21 20 24 21
European Agency for Safety and Health at Work 18 17 23 18
European Asylum Support Office 224 174 242 173
European Aviation Safety Agency 335 259 348 221
European Banking Authority 58 57 61 57
European Border and Coast Guard Agency 957 936 1 323 873
European Centre for Disease Prevention and Control 110 100 134 96
European Centre for the Development of Vocational Training 20 20 22 21
European Chemicals Agency 135 130 150 128
European Climate, Infrastructure and Environment Executive
Agency
69 68 72 68
European Education and Culture Executive Agency 70 69 75 68
European Environment Agency 116 104 140 86
European Fisheries Control Agency 35 32 43 33
European Food Safety Authority 164 163 170 154
European Foundation for the Improvement of Living and
Working Conditions
26 26 30 26
European Health and Digital Executive Agency 56 55 57 54
European Innovation Council and SMEs Executive Agency 48 48 52 48
European Institute for Gender Equality 9 9 11 9
European Institute of Innovation and Technology 454 432 495 433
European Insurance and Occupational Pensions Authority 38 38 40 37
European Labour Authority 49 46 45 41
European Maritime Safety Agency 134 122 146 115
European Medicines Agency 516 503 601 515
European Monitoring Centre for Drugs and Drug Addiction 34 33 35 27
European Public Prosecutor's Office 76 75 86 75
European Research Council Executive Agency 67 67 69 68
European Research Executive Agency 112 111 118 112
European Securities and Markets Authority 77 76 83 78
European Training Foundation 33 30 35 28
European Union Agency for Criminal Justice Cooperation 84 71 94 69
Annual accounts of the European Union 2024
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EUR million
Commitment
appropriations
Payment
appropriations
Agency
Total
appropr.
available
Commit.
made
Total
appropr.
available
Payments
made
European Union Agency for Cybersecurity 43 32 47 30
European Union Agency for Law Enforcement Cooperation 240 233 263 228
European Union Agency for Law Enforcement Training 39 20 42 20
European Union Agency for Railways 62 46 49 44
European Union Agency for the Space Programme 2 779 580 2 173 971
European Union Fundamental Rights Agency 29 28 35 29
European Union Intellectual Property Office 483 321 483 318
Fusion for Energy Joint Undertaking 812 746 694 642
Translation Centre for the Bodies of the European Union 45 42 48 43
Total 9 123 6 348 9 091 6 393
EUR million
Commitment
appropriations
Payment appropriations
Type of expenditure
Total appropr.
available
Commit.
made
Total appropr.
available
Payments
made
Administrative 569 546 694 536
Operational 6 334 3 735 6 147 3 794
Staff 2 221 2 067 2 250 2 063
Total 9 123 6 348 9 091 6 393
Annual accounts of the European Union 2024
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GLOSSARY
Actuarial assumptions
Assumptions used to calculate the costs of future events that affect the pension liability.
Actuarial gains and losses
For a defined benefit scheme, the changes in actuarial deficits or surpluses. They arise as a result of
differences between the previous actuarial assumptions and what has actually occurred and due to effects
of changes in actuarial assumptions.
Administrative appropriations
Administrative appropriations cover the running costs of the Institutions and entities (staff, buildings,
office equipment).
Adopted budget
Draft budget becomes the adopted budget as soon as it is approved by the Budgetary Authority and
declared definitely adopted by the President of the European Parliament.
Amending budget
Decision adopted during the budget year to amend (increase, decrease, transfer) aspects of the adopted
budget of that year.
Amounts to be called from Member States
These represent expenses incurred during the reporting period that will need to be funded by future
budgets, i.e. by the EU Member States. This is a consequence of the co-existence of accruals based
financial statements and a cash based budget.
Annual Activity Report (AAR)
Annual Activity Reports indicate the results of operations by reference to objectives set, associated risks
and the internal control structure, inter alia. Since the 2001 budget exercise for the Commission and
since 2003 for all European Union institutions, the ‘authorising officer by delegation’ must submit an AAR
to his/her institution on the performance of his/her duties, together with financial and management
information.
Appropriations
Budget funding. The budget forecasts both commitments and payments (cash or bank transfers to the
beneficiaries). Appropriations for commitments and payments often differ (differentiated appropriations)
because multi annual programmes and projects are usually fully committed in the year they are decided
and are paid over the years as the implementation of the programme and project progresses. Non-
differentiated appropriations apply to administrative expenditure, for agricultural market support and
direct payments and commitment appropriations equal payment appropriations.
Assigned revenue
Dedicated revenue received to finance specific items of expenditure. The main source of external
assigned revenue is financial contributions from third countries to programmes financed by the Union.
The main source of internal assigned revenue is revenue from third parties in respect of goods, services
or work supplied at their request; revenue arising from the repayment of amounts wrongly paid and
revenue from the sale of publications and films.
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Available for sale financial assets
All financial assets (except derivatives) that are according to International Public Sector Accounting
Standards measured at fair value and for which the changes in fair value are to be recognised in a
reserve in net assets until derecognition (or impairment).
Budget line
As far as the budget structure is concerned, revenue and expenditure are shown in the budget in
accordance with a binding nomenclature which reflects the nature and purpose of each item, as imposed
by the budgetary authority. The individual headings (title, chapter, article or line) provide a formal
description of the nomenclature.
Cancellation of appropriations
Unused appropriations that may no longer be used.
Carryover of appropriations
Exception to the principle of annuality in so far as appropriations that could not be used in a given budget
year may, under strict conditions, be exceptionally carried over for use during the following year.
Commitment
Legal pledge to provide finance subject to certain conditions. The EU commits itself to reimbursing its
share of the costs of an EU funded project. Today’s commitments are tomorrow’s payments. Today’s
payments are yesterday’s commitments.
Commitment appropriation
Commitment appropriations cover the total cost of legal obligations (contracts, grant
agreements/decisions) that could be signed in the current financial year.
Current service cost
The increase in scheme liabilities arising from service in the current financial year.
Decommitment
An act whereby a previous commitment (or part of it) is cancelled.
Defined benefit scheme
A pension or other retirement benefit scheme where the scheme rules define the benefits independently
of the contributions payable, and the benefits are not directly related to the investments of the scheme.
The scheme may be funded or unfunded.
Derivatives
Financial instruments whose value is linked to changes in the value of another financial instrument, an
indicator or a commodity. In contrast to the holder of a primary financial instrument (e.g. a government
bond), who has an unqualified right to receive cash (or some other economic benefit) in the future, the
holder of a derivative has only a qualified right to receive such a benefit. An example of a derivative is
currency forward contract.
Direct management
Mode of budget implementation. Under direct management the budget is implemented directly by
Commission services, Executive Agencies or Trust Funds.
Discount rate
The rate used to adjust for the time value of money. Discounting is a technique used to compare costs
and benefits that occur in different time periods.
Annual accounts of the European Union 2024
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Effective interest rate
The rate that discounts estimated future cash receipts or payments over the expected life of the financial
asset or financial liability to the net carrying amount of the asset or liability.
Financial assets and liabilities at amortised cost
All financial assets and liabilities that are according to International Public Sector Accounting Standards
measured at armotised cost.
Financial assets or liabilities at fair value through surplus or deficit
All financial assets or liabilities that are according to International Public Sector Accounting Standards
measured at fair value and for which the changes in fair value are to be recognised in surplus or deficit of
the period (i.e. derivatives).
Financial correction
The purpose of financial corrections is to protect the EU budget from the burden of irregular expenditure.
For expenditure under shared management, the task of recovering irregular payments is primarily the
responsibility of the Member State.
A 'confirmed' financial correction has been accepted by the Member State concerned. A 'decided' financial
correction has been adopted by a Commission decision and is always a net correction, where the Member
State is required to reimburse irregular funds to the EU budget, thus leading to a definitive reduction of
the allocated envelope to the Member State concerned. Confirmed and decided financial corrections are
reported in this publication as one category.
An 'implemented' financial correction has corrected the observed irregularity.
Indirect management
Mode of budget implementation. Under indirect management the Commission confers tasks of budget
implementation to bodies of EU law or national law.
Interruptions and suspensions
If the Commission finds, based on its own work or the information reported by audit authorities, that a
Member State has failed to remedy serious shortcomings in the management and control systems and/or
to correct irregular expenditure which had been declared and certified, it may interrupt or suspend
payments.
Irregularity
An irregularity is an act which does not comply with the applicable EU or national rules and which has a
potentially negative impact on the EU financial interests. Irregularities, which may be the result of the
conduct of beneficiaries claiming funds or of the authorities responsible for making payments. The notion
of irregularity is wider than that of fraud, which refers to conduct that may qualify as a criminal offence.
Lapsing appropriations
Unused appropriations to be cancelled at the end of the financial year. Lapsing means the cancellation of
all or part of the authorisation to make expenditures and/or incur liabilities which is represented by an
appropriation. Only for Joint Undertakings, as specified in their Financial Rules, any unused
appropriations may be entered in the estimate of revenue and expenditure of up to the following three
financial years (the so-called ‘N+3’ rule). Hence, lapsing appropriations for JUs could be reactivated until
financial year ‘N+3’.
Outstanding commitments
As the Reste à Liquider (RAL), they represent the amount where a budgetary commitment has been
made but the subsequent payment is not yet done. They represent payment obligations for the EU for
future years and stem directly from the existence of multi annual programmes and the dissociation
between commitment and payment appropriations.
Annual accounts of the European Union 2024
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Own resources
The main source of revenues for the EU budget. The different own resources are listed in the applicable
Own Resource Decision (Council Decision (EU, Euratom) 2020/2053) and are traditional own resources,
VAT-based own resource, GNI-based resource and non-recycled plastic packaging waste-based own
resource.
Payment appropriations
Payment appropriations cover expenditure due in the current year, arising from legal commitments
entered in the current year and/or earlier years.
Pre-financing
A payment intended to provide the beneficiary with a float. It may be split into a number of instalments
in accordance with the provisions of the underlying contract, decision, agreement or the 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.
Preventive measure
Preventive measures, which are at the Commission’s disposal to protect the EU budget when it is aware
of potential deficiencies, include suspensions and interruptions of payments from the EU budget to the
operational programme.
Reste à Liquider (RAL)
As the Outstanding commitments, it represents the amount where a budgetary commitment has been
made but the subsequent payment is not yet done. They represent payment obligations for the EU for
future years and stem directly from the existence of multi annual programmes and the dissociation
between commitment and payment appropriations.
Shared management
Mode of budget implementation. Under shared management budget implementation tasks are delegated
to Member States. About three quarters of the EU expenditure falls under this implementation mode.
Traditional own resources
Traditional own resources are defined in the applicable Own Resources Decision (Council Decision (EU,
Euratom) 2020/2053) and comprise namely customs duties and sugar levies.
Transfers (between budget lines)
Transfers between budget lines imply the relocation of appropriations from one budget line to another, in
the course of the financial year, and thereby they constitute an exception to the budgetary principle of
specification. They are, however, expressly authorised by the Treaty on the Functioning of the European
Union under the conditions laid down in the Financial Regulation (FR). The FR identifies different types of
transfers depending on whether they are between or within budget titles, chapters, articles or headings
and require different levels of authorisation.
Annual accounts of the European Union 2024
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LIST OF ABBREVIATIONS
AAR Annual Activity Report
AC Amortised Cost
AFS Available For Sale
AMIF Asylum, Migration and Integration Fund
AOD Authorising Officers by Delegation
ATM
BAR
Air Traffic Management
Brexit adjustment reserve
BOP Balance of Payments
BUFI Fund Budget Fines Fund
CAP Common Agricultural Policy
CCS LGF Cultural and Creative Sector Guarantee Facility
CEF2 Connecting Europe Facility
CEF DI Connecting Europe Facility Debt Instrument
CF Cohesion Fund
CIP Competitiveness and Innovation Framework Programme
COM European Commission
COSME Competitiveness of Enterprises and Small and Medium-sized Enterprises
COSO Committee of Sponsoring Organizations of the Treadway Commission
CPF Common Provisioning Fund
CPR
CRII+
CRO
Common Provisions Regulation
Coronavirus Response Investment Initiative Plus
Chief Risk Officer
D&WM Decommissioning and Waste Management
EAD Exposure At Default
EAFRD European Agricultural Fund for Rural Development
EAGF European Agricultural Guarantee Fund
EAR European Union Accounting Rule
EaSI Employment and Social Innovation
Annual accounts of the European Union 2024
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EBRD European Bank for Reconstruction and Development
ECA European Court of Auditors
ECB European Central Bank
ECL Expected Credit Losses
ECOFIN Economic and Financial Affairs Council
ECSC i.L. European Coal and Steel Community in Liquidation
EDF European Development Fund
EDIF Guarantee Facility under the Western Balkan
EEA European Economic Area
EEAS European External Action Service
EFSD European Fund for Sustainable Development
EFSE European Fund for Southeast Europe
EFSF European Financial Stability Facility
EFSI European Fund for Strategic Investments
EFSM European Financial Stabilisation Mechanism
EFTA European Free Trade Association
EGNOS European Geostationary Navigation Overlay System
EIB European Investment Bank
EIF European Investment Fund
ElectriFI Electrification Financing Initiative
ELM
EMFF
External Lending Mandate
European Maritime and Fisheries Fund
EMU Economic and Monetary Union
ENEF Enterprise Expansion Fund
ENIF Enterprise Innovation Fund
ENPI European Neighbourhood and Partnership Instrument
EP European Parliament
ERDF European Regional Development Fund
ERI
ESA
EIB Resilience Initiative
European Space Agency
ESF European Social Fund
Annual accounts of the European Union 2024
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ESIF European Structural and Investment Funds
ESM European Stability Mechanism
ETF Exchange-Traded Fund
ETS
EU
Emissions trading scheme
European Union
EUMETSAT European Organisation for the Exploitation of Meteorological Satellites
Euratom European Atomic Energy Community
EUSF
FGC
European Union solidarity Fund
Financial Guarantee Contract
FIFO First-in, First-out
FP7 7th Research Framework Programme for Research and Technological Development
FR EU Financial Regulation
FSDA Financial Statement Discussion and Analysis
FVNA Fair Value through Net Assets/Equity
FVSD Fair Value through Surplus or Deficit
GDP Gross Domestic Product
GNI Gross National Income
GNSS Global Navigation Satellite Systems
H2020 Horizon 2020
HLRCP High Level Risk and Compliance Policy
IBMF
IF
Integrated Border Management Fund
Innovation Fund
IIW Infrastructure and Innovation Window
IMF International Monetary Fund
IPSAS International Public Sector Accounting Standards
IT Information Technology
ITER International Thermonuclear Experimental Reactor
JRC Joint Research Centre
JSIS
JU
Joint sickness insurance scheme
Joint Undertaking
LGD Loss given Default Rate
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LGF Loan Guarantee Facility
LGTT Loan Guarantee Instrument for TEN-T projects
MAP Multi Annual Program - Medium Enterprise Financial Inclusion Programme
MEP Member of the European Parliament
MFA Macro Financial Assistance
MFF Multiannual Financial Framework
MIM
MMF
Mutual Insurance mechanism
Money Market Fund
MSME Micro, Small and Medium Enterprise
NDICI Neighbourhood, Development and International Cooperation Instrument
NGEU NextGenerationEU
ORD Own Resources Decision
PBI Project Bond Initiative
PD Probability of Default
PF4EE Private Finance for Energy Efficiency Instrument
PGF Participants Guarantee Fund
POCI
PPP
Purchased or originated as credit impaired
Public-Private Partnership
PSEO Pension Scheme of European Officials
RAL ‘Reste à Liquider’ (Outstanding Commitments)
RSFF Risk Sharing Finance Facility
RRF Recovery and Resilience Facility
RTD Research, Technological Development and Demonstration
S&P Standard & Poor's Financial Services LLC
SANAD MENA Fund for Micro-, Small and Medium Enterprises
SAPARD Special Accession Programme for Agriculture and Rural Development
SEMED Southern and Eastern Mediterranean Micro, Small and Middle sized Entreprises Financial
Inclusion Programme
SICR Significant Increase of Credit Risk
SIUGI SME Initiative Uncapped Guarantee Instrument
SME Small and Medium-sized Enterprise(s)
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SMEW SME Window (Small and Medium-sized Enterprises Window)
STEP
SURE
Strategic technologies for Europe platform
Support to mitigate Unemployment Risks in an Emergency
TFEU Treaty on the Functioning of the European Union
TOR Traditional own resources
TRDI
ULCM
Temporary Rural Development Instrument
Ukraine Loan Cooperation Mechanism
VAT Value Added Tax