Section 2: Rules for financing the participation in Union programmes and activities
Article UNPRO.2.1: Financial conditions
1. Participation of the United Kingdom or United Kingdom entities in Union programmes, activities or parts thereof shall be subject to the United Kingdom contributing financially to the corresponding funding under the Union budget.
2. The financial contribution shall take the form of the sum of:
(a) a participation fee; and
(b) an operational contribution.
3. The financial contribution shall take the form of an annual payment made in one or more instalments.
4. Without prejudice to Article UNPRO.8 [Participation fee in the years 2021 to 2026], the participation fee shall be 4% of the annual operational contribution and shall not be subject to retrospective adjustments except in relation to suspension under point (b) of Article UNPRO.3.1(7) [Suspension of the participation of the United Kingdom in a Union programme by the Union] and termination under point (c) of Article UNPRO.3.3.(6) [Termination of the participation in a programme or activity in the case of substantial modification to Union programmes]. As of 2028 the level of the participation fee may be adjusted by the Specialised Committee on Participation in Union Programmes.
5. The operational contribution shall cover operational and support expenditure and be additional both in commitment and payment appropriations to the amounts entered in the Union budget definitively adopted for programmes or activities or exceptionally parts thereof increased, where appropriate, by external assigned revenue that does not result from financial contributions to Union programmes and activities from other donors, as defined in Protocol I.
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4. Detailed rules on the establishment of the relevant amounts of the legal commitments referred to in paragraph 2 of this Article, including in the case of consortia, and on the calculation of the automatic correction may be laid down in Protocol I.
Article UNPRO.2.3: Financing in relation to programmes implemented through financial instruments or budgetary guarantees
1. Where the United Kingdom participates in a Union programme, activity, or parts thereof that is implemented through a financial instrument or budgetary guarantee, the contribution of the United Kingdom to programmes implemented through financial instruments or budgetary guarantees under the Union budget implemented under Title X of the Financial Regulation applicable to the general budget of the Union shall be made in the form of cash. The amount contributed in cash shall increase the Union budgetary guarantee or the financial envelope of the financial instrument.
2. Where the United Kingdom participates in a programme referred to in paragraph 1 that is implemented by the European Investment Bank Group, if the European Investment Bank Group needs to cover losses that are not covered by the guarantee provided by the Union budget, the United Kingdom shall pay to the European Investment Bank Group a percentage of those losses equal to the ratio of the Gross Domestic Product at market prices of the United Kingdom to the sum of the Gross Domestic Product at market prices of the Member States, the United Kingdom and any other third country participating in that programme. The Gross Domestic Product at market prices to be applied shall be the latest available as of 1 January of the year in which the payment is due as provided by EUROSTAT, as soon as the arrangement referred to in Article UNPRO.5.2 [Statistical cooperation] applies and according to the rules of this arrangement. Before this arrangement applies, the GDP of the United Kingdom shall be the one established on the basis of data provided by the OECD.
3. Where appropriate, modalities for the implementation of this Article, in particular ensuring that the United Kingdom receives its share of unused contributions to budgetary guarantees and financial instruments, shall be specified further in Protocol I.