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System of own resources of the EU

2011/0183(CNS)

PURPOSE: reform of the system of own resources of the European Union (‘own resources’ package).

LEGISLATIVE ACT: 2014/335/EU, Euratom: Council Decision of 26 May 2014 on the system of own resources of the European Union.

CONTENT: the Decision lays down rules on the allocation of own resources of the Union in order to ensure the financing of the Union's annual budget. It is part of a set of three legislative acts forming the ‘own resources’ package linked to the 2014-2020 EU multiannual financial framework (MFF) and also including:

·        a Council Regulation implementing the system of own resources;

·        a Council Regulation relating to the terms and procedure of provision of budgetary revenues.

Categories of own resources: for the period 2014-2020, revenue from the following shall constitute own resources entered in the budget of the Union:

1)the traditional own resources, that is i) consisting of levies, premiums, additional or compensatory amounts, additional amounts or factors, ii) Common Customs Tariff duties and other duties established or to be established by the institutions of the Union in respect of trade with third countries, iii) customs duties on products under the expired Treaty establishing the European Coal and Steel Community, as well as iv) contributions and other duties provided for within the framework of the common organisation of the markets in sugar;

·        from 1 January 2014, the Member States are to retain, by way of collection costs, 20% of the amounts collected by them (in place of 25% during the period 2007-2013)..

2) the application of a uniform rate valid for all Member States to the harmonised VAT assessment bases, determined in accordance with Union rules. For each Member State the assessment base to be taken into account for this purpose shall not exceed 50 % of gross national income (GNI).

the uniform tax shall be fixed at 0.30%. For the period 2014-2020 only, the rate of call of the VAT-based own resource for Germany, the Netherlands and Sweden shall be fixed at 0.15%.

3) the application of a uniform rate, to be determined pursuant to the budgetary procedure in the light of the total of all other revenue, to the sum of GNI of all the Member States.

  • for the period 2014-2020 only, Denmark, the Netherlands and Sweden shall benefit from gross reductions in their annual GNI-based contribution of EUR 130 million, EUR 695 million and EUR 185 million respectively.
  • Austria shall benefit from a gross reduction in its annual GNI-based contribution of EUR 30 million in 2014, EUR 20 million in 2015 and EUR 10 million in 2016.

Revenue deriving from any new charges introduced within the framework of a common policy shall also constitute own resources entered in the budget of the Union.

Ceiling of own resources: in order to ensure strict budgetary discipline, the ceiling of own resources assigned to the Union to cover annual appropriations for payments should not exceed 1.23% of all the Member States' GNIs. The total amount of annual appropriations for payments for commitments should not exceed the ceiling of 1.29% of the sum of the Member States' GNIs.

Correction mechanism in favour of the United Kingdom: the correction in respect of budgetary imbalances accorded to the United Kingdom is maintained. The Decision defines the arrangements under which the correction shall be assumed by Member States other than the United Kingdom.

ENTRY INTO FORCE: the Decision should enter into force only once it has been approved by all Member States in accordance with their respective constitutional requirements.

The Decision shall apply from 01.01.2014 (in order to ensure transition to the revised system of own resources and to coincide with the financial year).