CHAPTER 7

CONTRIBUTIONS AND REIMBURSEMENTS

Determination of contributions
Article 24
1
Payment appropriations to cover the common costs incurred in preparation for, or further to, operations which are not covered by miscellaneous revenue shall be financed by contributions from the participating Member States.
2
Payment appropriations to cover the operational common costs of an operation shall be covered by contributions from the contributing States.
3
The contributions payable by the contributing Member States for an operation shall be equal to the amount of the payment appropriations entered in the budget and intended to cover the operational common costs of that operation, after deduction of the amounts of the contributions payable for the same operation by contributing third States pursuant to Article 12.
4
The breakdown of contributions between the Member States from whom a contribution is required shall be determined in accordance with the gross national product scale as specified in Article 41(2) of the TEU and in accordance with the Council Decision 2014/335/EU, Euratom , or any other Council Decision which may replace it.
5
The data for the calculation of contributions shall be those set out in the ‘GNI-based own resources’ column in the ‘Summary of financing of the general budget by type of own resource and by Member State’ table appended to the latest general budget adopted by the Union. The contribution of each Member State from whom a contribution is due shall be proportional to the share of gross national income (GNI) of that Member State in the total GNI aggregate of the Member States from whom a contribution is due.

Schedule for payment of contributions
Article 25
1
When the Council has adopted a reference amount for a Union military operation, the contributing Member States shall pay their contributions at the level of 30 % of the reference amount, unless the Council decides on a different percentage. The administrator shall call for contributions according to operational needs for the operation up to the agreed level.
2
The Special Committee, on the basis of a proposal by the administrator, may decide that additional contributions will be called before the adoption of an amending budget for the operation. The Special Committee may decide to refer the matter to the competent preparatory bodies at the Council.
3
When an amending budget has been adopted for a specific operation, the Member States shall pay the balance of the contributions which they owe for that operation in application of Article 24. However, when the operation is planned to last more than six months within a financial year, the balance of contributions shall be paid in two instalments. In such a case, the first instalment shall be paid within 60 days of the launching of the operation; the second instalment shall be paid by a deadline to be set by the Special Committee acting on a proposal from the administrator, taking into account operational needs. The Special Committee may depart from the provisions of this paragraph.
4
The administrator shall send the corresponding calls for contributions by letter to the national administrations whose details have been communicated to him or her when:
a
a draft budget for a financial year is approved by the Special Committee provided for in Article 19. The first call for contributions covers the operational needs for eight months. The second call for contributions covers the remaining balance of contributions, taking into account the balance of the previous year budget outturn if the Special Committee decided to enter this balance in the current budget after the audit opinion has been received;
b
a reference amount has been adopted as provided for in Article 25(1); or
c
an amending budget is approved as provided for in Article 20.
5
Without prejudice to the other provisions in this Decision, the contributions shall be paid within 30 days following despatch of the relevant call for contributions, with the exception of the first call for contributions for a new financial year's budget, where the deadline for payment shall be 40 days following dispatch of the relevant call for contributions.
6
Once the draft aggregated budget has been submitted to the Special Committee, for those Member States with budgetary and financial procedures not allowing payment of their contribution within the established deadlines the administrator may issue to the State concerned, an anticipated call for contributions before the end of the current financial year as a prepayment for the call for contributions for the following financial year's budget.
7
Each contributing State shall pay the bank charges relating to the payment of its own contribution.
8
The administrator shall acknowledge receipt of contributions.

Early financing
Article 26
1
In the case of a Union military rapid response operation, contributions shall be due by contributing Member States at the level of the reference amount. Without prejudice to Article 25(3), payments shall be made as defined below.
2
For the purpose of the early financing of the Union military rapid response operations, the participating Member States shall either:
a
pay contributions to Athena in advance; or
b
when the Council decides to conduct a Union military rapid response operation to the financing of which they contribute, pay their contributions to the common costs of that operation within five days following despatch of the call at the level of the reference amount, unless the Council decides otherwise.
3
For the purpose referred to in paragraph 2, the Special Committee, composed of one representative of each of the Member States contributing in advance, shall establish provisional appropriations in a specific title in the budget. These provisional appropriations shall be covered by contributions payable by the Member States contributing in advance within 90 days following despatch of the call for these contributions.
4
Any provisional appropriations referred to in paragraph 3 which are used for an operation shall be replenished within 90 days following despatch of the call.
5
Without prejudice to paragraph 1, any Member State contributing in advance may in specific circumstances authorise the administrator to use its contribution paid in advance to cover its contribution to an operation in which it participates, other than a rapid response operation. The contribution paid in advance shall be replenished by the Member State concerned within 90 days following despatch of the call.
6
Where funds are required for an operation, other than a rapid response operation, before sufficient contributions to that operation have been received:
a
contributions paid in advance by Member States which contribute to financing that operation after approval by the Member States contributing in advance, may be used up to 75 % of their amount to cover contributions due to that operation. The contributions paid in advance shall be replenished by the Member States contributing in advance within 90 days following despatch of the call;
b
in the case referred to in point (a) of this paragraph, contributions due for the operation under Article 25(1) from Member States that had not contributed in advance shall be paid, after approval by the Member States concerned, within five days following despatch of the call by the administrator.
7
The operation commander may commit and pay the amounts made available to him or her, including pursuant to Article 34(3).
8
Any Member State may reverse its option by notifying the administrator at least three months in advance.
9
Interest earned on the early financing will be apportioned annually to the Member States contributing in advance and added to their provisional appropriations. The amounts will be notified to those Member States as part of the annual budgetary approval process.

Reimbursement of pre-financing
Article 27
1
A Member State, a third State or, as appropriate, an international organisation which has been authorised by the Council to pre-finance a part of the common costs of an operation may obtain reimbursement from Athena by making a request accompanied by the necessary supporting documents and addressed to the administrator at the latest two months after the date of completion of the operation concerned.
2
No request for reimbursement may be honoured if it has not been approved by the operation commander, if still in office, and by the administrator.
3
If a request for reimbursement presented by a contributing State is approved, it may be deducted from the next call for contributions addressed to that State by the administrator.
4
If no call for contributions is anticipated when the request is approved, or if the approved request for reimbursement would exceed the anticipated contribution, the administrator shall make payment of the amount to be reimbursed within 30 days, taking account of Athena's cash flow and of what is needed to finance the common costs of the operation concerned.
5
Reimbursement shall be due in accordance with this Decision even if the operation is cancelled.
6
Reimbursement shall include interest earned on the amount made available through pre-financing.

Management by Athena of expenditure not included in common costs
Article 28
1
The Special Committee, on the basis of a proposal by the administrator, with the assistance of the operation commander, or by a Member State, may decide that the administrative management of certain expenditure in relation to an operation (‘nation borne costs’), while remaining the responsibility of the Member State which it concerns, shall be entrusted to Athena.
2
The Special Committee, in its decision, may authorise the operation commander to enter into contracts on behalf of the Member States participating in an operation and, where appropriate, third parties, for the acquisition of the services and supplies to be financed as nation borne costs.
3
The Special Committee, in its decision, shall lay down the modalities for the pre-financing of nation borne costs.
4
Athena shall keep accounts of the nation borne costs entrusted to it and incurred by each Member State and, where appropriate, third parties. Each month it shall send each Member State and, where appropriate, those third parties, a statement of the expenditure borne by it and incurred by it or by its staff during the preceding month, and shall call for the necessary funds to pay for this expenditure. The Member States and, where appropriate, those third parties, shall pay Athena the funds required within 30 days following despatch of the call for funds.

Management by Athena of pre-financing and expenditure not included in common costs to facilitate the initial deployment of the forces to an operation
Article 29
The Special Committee, if particular operational circumstances so require, on the basis of a proposal by the administrator, with the assistance of the operation commander, or by a Member State, may decide that the pre-financing and administrative management of certain expenditure in relation to an operation, while remaining the responsibility of the Member State which it concerns, shall be entrusted to Athena in order to facilitate the initial deployment of the forces to an operation, before participating Member States are confirmed. The management of these costs shall be assured within existing means and resources and the initial outlay capped at 20 % of the reference amount. In this case the Special Committee shall outline in its decision the modalities for pre-financing and reimbursement of the pre-financed amounts by the future participating Member States and third parties.

Management by Athena of third party financial contributions
Article 30
1
In line with the relevant provisions of the operation's legal framework and following PSC decision to accept the implementation or management of a project by the operation or a financial contribution by a third party or a Member State to the expenditure arising from the operation, the Special Committee may authorise that the administrative management of the funding for that project or of that financial contribution to be entrusted to Athena, within existing means and resources. This may include projects funded by the Union.
2
The cost relating to the management of the contribution should be covered by the contribution itself. The Special Committee may decide that certain costs associated with the contribution and relative to the active phase of the operation are eligible as common costs on a case-by-case basis.
3
For the purposes of the management of a contribution by a third party, the Union or a Member State, the administrator shall, upon approval by the Special Committee, negotiate and sign an ad hoc administrative arrangement with the third party, the Union or the Member State, defining the purpose, costs to be covered by the contribution and the management modalities of the contribution, including the accountability of the operation commander to the Special Committee. The Administrator shall make sure that the management of the contribution shall respect the ad hoc arrangements and shall provide to the contributor concerned, directly or through the operation commander, all the relevant information relating to the management of the contribution.

Interest on late payment
Article 31
1
If a State does not fulfil its financial obligations, the Union rules on interest on late payment determined by Article 78 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council or any other Regulation which may replace it in relation to the payment of contributions to the Union budget shall be applicable by analogy.
2
When payment is late by no more than 20 days, no interest shall be charged. When payment is late by more than 20 days, interests shall be charged for the entire delay.
Council Decision 2014/335/EU, Euratom of 26 May 2014 on the system of own resources of the European Union (OJ L 168, 7.6.2014, p. 105).
Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).