THE €30 BILLION EU ‘OFF-BUDGET’ FUND WHICH YOU’RE PAYING INTO,
AND WHICH THE BBC WON’T TELL YOU ABOUT

IMPORTANT : This is in addition to the UK's annual 'net contribution' payments

UK is expected to continue paying into ‘off-the-books’ EU fund for 10 years after Brexit

BEFORE YOU READ THIS

Please remember that the UK is the second-largest donor of foreign aid in the World, after the USA. No-one can say that the UK isn’t generous. However the information that follows is about a fund administered by the EU Commission, using UK money.

Yesterday the EU committed an extra €115 million for ‘job creation and migrant protection’ in the Sahel region of Africa.

Today we thought it might be a good time to remind Remain MPs about the EU’s €30 BILLION ‘off-the-books’ fund, which the UK taxpayer contributes to, but which is never included in official figures for the UK’s annual net contribution to the EU.

Brexit Facts4EU.org Summary

The massive 'European Development Fund' (EDF)

This ‘off-the-books’ fund stands at €30.5bn euros (and growing)
It is NOT included when the BBC talks about the UK’s net contributions
The UK pays almost 15% of it (£3.8 billion pounds since 2014)
As part of May’s Brexit deal the UK will still be paying for 10 years after Brexit
It’s called the ‘European Development Fund’ or EDF
It has nothing to do with developing Europe, or the EU
It’s spent outside the EU, mainly to 78 African, Caribbean and Pacific countries

We must stress again that this fund is NOT included when people talk about the UK’s annual EU contributions. This is extra spending as a result of the UK’s membership of the EU, but it’s never mentioned. There are other such funds but here we focus exclusively on the EDF.

The EU is expecting the UK to pay for this - and continue paying - as part of the ‘financial settlement’ that has been agreed by Theresa May.

This will mean the UK paying billions to the EU until 2030 – and this money is in addition to the UK’s annual contributions to the EU’s main budget. Bizarrely there are no time limits for implementing projects, which can take ‘more than 10 years’.

What is the European Development Fund?

Well, it’s not about developing ‘Europe’. This is what the EU Commission say:

“The European Development Fund (EDF) is the EU's main instrument for providing development aid to African, Caribbean and Pacific (ACP) countries and to overseas countries and territories (OCTs).
“The EDF funds cooperation activities in the fields of economic development, social and human development as well as regional cooperation and integration.
“It is financed by direct contributions from EU Member States according to a contribution key and is covered by its own financial rules.
“The 11th EDF was created by an intergovernmental agreement signed in June 2013 – as it is not part of the EU Budget – and entered into force on the 1st March 2015, after ratification by all Member States.
“The European Development Fund (EDF) is the EU's main instrument for providing development aid to African, Caribbean and Pacific (ACP) countries and to overseas countries and territories (OCTs).
“It is financed by direct contributions from EU Member States according to a contribution key and is covered by its own financial rules.”

Where does the €30 billion go?

83% of the EDF’s expenditure went to African countries, according to the last breakdown we researched. The balance went to what are called OCTs – the overseas territories of France, Denmark, the Netherlands and the UK.

Brexit Facts4EU.Org looked at one report about the EDF’s contribution to the road network in Sub-Saharan Africa, a sector for which total EDF commitments amounted to almost €7.4 billion over the 1995-2011 period.

We are not road-building experts but given the very low costs in that region, we assume that €7.4 billion euros was enough to tarmac over most of the region.

How big is this fund and how fast is it growing?

As our graph shows, this fund has grown rapidly over the years. The latest 'tranche' is over twice that in 2007.

How much does the UK pay?

This fund is separate from the normal annual EU budget and the proportions borne by each member state are different. In the case of the EDF the UK pays a disproportionately high 14.8% of the EU total.

This additional EU Fund cost the UK £1/2 billion in 2016 alone. [Source: UK DFID Dept]

Who checks where this money is going?

Each year the European Court of Auditors reviews the performance of the EDF. In the case of the EU’s €7.4 billion Sub-Saharan road building project, the ECA described the results only as “partially effective”.

The ECA samples the hundreds of projects financed by the EDF each year and draws conclusions on how well the money is being spent. In its report the ECA declared that:

“27% of EDF expenditure transactions were affected by a material level of error.”

In 46% of the errors, expenditure either wasn’t eligible under the Fund or it hadn’t even been incurred.

It’s important to note that whilst the EDF is funded by direct contributions from EU Member States such as the UK, these funds are managed by the EU Commission.

Observations

We’re not sure about you, dear reader, but from where we come from €30.5 billion euros is quite a lot of money. It would certainly pay for a few weekly trips to the supermarket.

Spent in Africa, this represents an even greater amount of course.

The key questions are for Remain MPs

Did you even know of the existence of this massive EU fund?
Did you know that it’s not included in the official EU budget?
Did you know that British taxpayer’s money is one of the main sources for this EU ‘off-budget’ spending?
And despite the billions being spent, are you happy that you don’t even get to have a ‘meaningful vote’ on it?

Secondary questions to the BBC

Do you not think that this is important?
You have massive resources, we have almost none – why do you never report these things?

The UK is the second-most generous donor on the planet when it comes to foreign aid, after the USA. The UK can hold its head up high.

Why on earth do we need to send money to the EU, on top of our massive annual contributions, for it to waste on projects which cannot be voted on by MPs?

And why isn’t the British public told about these things?

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Brexit Facts4EU.Org, Fri 05 Apr 2019

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Reader Comments 11

1. Concerned Expat , Friday, April 05, 2019, 05:59:

Well, well another excellent piece. It would be good to know what benefit Africa actually ends up getting from this largesse. I suspect very little. It is hardly surprising that Europe is struggling and blaming everything on Brexit, it is very convenient.

2. Patrick F , Friday, April 05, 2019, 06:22:

Trade, not aid.

3. Adam, Bristol , Friday, April 05, 2019, 08:13:

This article is typical of brexiters, borderline racist. If this aid was going to a different continent you might not shout about it as much.

4. James Bertram , Friday, April 05, 2019, 09:19:

Not about racism, Adam, all about accountability. The development aid industry is highly wasteful of resources, and too much goes back to elites and westerners, or into failed projects that have not been thought through, or projects that cause more harm than good. I have some brief background in this area, and travel in the 3rd world a lot. My view is that one of the most effective ways to help people who are really in need of aid money is to give them the cash directly and trust them to do what they think best. No 'professional western aid agencies' involved - just do it yourself.

5. James Bertram , Friday, April 05, 2019, 09:28:

Too, I should add, one of the reasons I voted for Brexit is that I want peoples from the 3rd World to have equal immigration opportunities to enter the UK rather than just favouring Europeans.
Too, I want the UK to trade directly with the Commonwealth again - when we joined the EEC in 1972 we really shafted our ex-colonies and severely damaged their trade. It is time to make amends.

6. andy , Friday, April 05, 2019, 10:19:

Adam - yours is a weak attempt to deflect from the purpose of the article - where the money goes is irrelevant.
Incidentally, using your same logic, the EU is racist in the way it has determined where the money is spent!

7. J Slater , Friday, April 05, 2019, 11:31:

WE LEFT THE EU ON 29 MARCH 2019.
Any attempts by May and her cohorts to drag us back in to the EU is illegal. We legally left the EU on 29th March 2019. l A legal challenge is being made. May's wrongs are about to catch up with her.Not even a PM is above the Law.

8. Adam Hiley , Friday, April 05, 2019, 11:51:

Adam in Bristol is a typical Remoaner bore why not move to Your beloved Europe and stay there I will buy You a one way Ferry or Plane ticket if You want live with Macron or Merkel

9. barbara Jell , Friday, April 05, 2019, 16:32:

Adam Hiley - I would willingly contribute to Adam from Bristol's one way ticket ... he would be SO at home with Dictators Merkel and Macron - he is so obviously unhappy in Britain poor darling ...and note the nasty twisted little allusion to 'racism' ....SO predictable.

10. Concerned Expat , Friday, April 05, 2019, 17:08:

Adam, you obviously have not see some of the hare-brained 'aid' that the EU throws around! Haven't you worked out yet that the country has been sold down the river? For God's sake wake up and smell the coffee before you are part of the new EUUSSR, as it is happening bit-by-stealthy-bit.

11 comments, page 1 of 2

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THE €30 BILLION EU ‘OFF-BUDGET’ FUND WHICH YOU’RE PAYING INTO, AND WHICH THE BBC WON’T TELL YOU ABOUT