Amending budget 7/2020: update of revenue (own resources)

The European Parliament adopted by 584 votes to 56, with 49 abstentions, a resolution on the Council position on Draft amending budget No 7/2020 of the European Union for the financial year 2020 - Update of revenue (own resources).

Parliament approved the Council's position on draft amending budget No 7/2020, which is intended to update the revenue side of the budget to take account of recent developments.

In its resolution, Parliament recalled that in the context of the COVID-19 pandemic, the Commission's spring 2020 forecast predicted a record contraction of the Union's economy by 7.5% in 2020, followed by a rebound of 6.1% in 2021, which shall not be sufficient to fully make up for the losses in the year 2020. The worsening economic situation is reflected in the own resources forecast for 2020.

Parliament therefore considered it necessary to make two types of adjustments to the revenue side of the budget:

- an update of the estimates for traditional own resources (TOR) as well as for the own resources based on value added tax (VAT) and gross national income (GNI), to take account of more recent economic forecasts,

- and an update of the UK correction.

Other revenue shall also be updated to take into account the amounts of finally cashed fines and periodic penalty payments until June 2020 as well as negative exchange rate differences.