Brussels, 28/06/2011 (Agence Europe) - Alongside its proposals on the new multi-annual budgetary framework 2014-2020, the European Commission will also present a proposal, on Wednesday 29 June, on future EU own resources. The aim is to reduce the amount member states contribute to the EU budget from 2014, with the consequent shortfall being made up from new sources of revenue. This would reduce the dependence of the Community budget on funding from national contributions, which currently make up 70% of funding, or, indeed, 80% if VAT, levied nationally and paid into the EU budget, is included.
Against the current background of spending cuts and budgetary austerity across Europe, new sources of funding might reduce the pressure from member states for a freeze or, at least, only a very slight increase, on the already tight Community budget. Revenue could come from part of the money generated by a European tax on financial transactions or on financial activities (FTT or FAT), the proposal for which is expected by this autumn, from a proportion of the money generated by the European greenhouse gas emissions trading scheme or from a levy on aeroplane tickets, as part of the aviation sector's contribution to a reduction in polluting emissions.
All these options are on the table but the Commission is having to proceed with great caution given the opposition from some member states to any desire shown to increase budgetary resources. It is taking great care to point out that it is not suggesting a direct tax and that any new Community tax will be offset by a reduction in national contributions. The Commission has also to take cognisance of the strong opposition from financial circles, in particular in the UK, to a tax on financial transactions or activities, some of the receipts of which would swell Community coffers. (F.G./transl.rt)