Brussels, 12/02/2013 (Agence Europe) - The British rebate remains in place and there are now prospects that new own resources will be created for the EU budget, in accordance with the outcome of the European Council of 7 and 8 February regarding the revenue chapter of the multiannual financial framework (MFF) for 2014-2020.
Herman Van Rompuy, European Council President, acknowledged after the summit: “We spent some time on the revenue side, or in EU-language: 'own resources'. Three points here: - we decided on lower collection costs on duties and levies; we reached a compromise on rebates; and we opened perspectives for possible new own resources, in relation to a new VAT system and the future Financial Transaction Tax”.
The main political groups at the European Parliament threaten to reject the agreement on the MFF 2014-2020, at least unless changes are made to it. Changes would not be on the amount of credits, but would relate to: - 1) the degree of flexibility of the financial framework. MEPs fear that the large gap between payments and commitments, of €51.6 billion, could lead to structural deficit. In order to ensure that payments honour commitments, they suggest greater flexibility in the EU budget with rules stipulating that unused funds or margins be transferred from one year to the next and between spending categories, with qualified majority at the Council rather than unanimity; - and 2) the creation of new own resources to finance the budget. The EPP, S&D, ALDE and Greens/EFA Groups at the European Parliament call for “new, genuine own resources for the European budget to progressively replace the current system based heavily on national GNI contributions”. The joint statement finally calls for a compulsory revision clause that could be activated after a qualified majority vote in Council. MEPs trust that this will allow the financial framework to be revised within two or three years.
The EP will adopt a political stance in March by endorsing a non-binding resolution on this dossier. The MFF will be put to the vote at the EP plenary before the summer.
European Council advocates fairer and more transparent system. The own resources arrangements should be guided by the overall objectives of simplicity, transparency and equity, according to the European Council conclusions of 7/8 February. “An orderly ratio between appropriations for commitments and appropriations for payments should be maintained to guarantee their compatibility”, the European Council states. The new system of own resources of the European Union will come into force on the first day of the month following receipt of notification of its adoption by the last member state. All its elements will apply retroactively from 1 January 2014.
Traditional own resources. The system for collection of traditional own resources will remain unchanged. However, from 1 January 2014, member states shall retain, as collection costs, 20% of the amounts collected by them.
VAT-based own resources. The European Council calls upon the Council to continue working on the proposal from the Commission for a new own resource based on value added tax (VAT) to make it as simple and transparent as possible, to strengthen the link with EU VAT policy and the actual VAT receipts, and to ensure equal treatment of taxpayers in all member states. The new VAT own resource could replace the existing own resource based on VAT.
FTT-based own resource. On 22 January 2013, the Council adopted the Council Decision authorising enhanced cooperation in the area of financial transaction tax. Participating member states are invited to examine if it could become the base for a new own resource for the EU budget. “This would not impact non-participating member states and would not impact the calculation of the United Kingdom correction”, the conclusions stipulate.
GNI-based own resource. The method of applying a uniform rate for determining member states' contribution to the existing own resource based on Gross National Income (GNI) will remain unchanged.
Corrections. The existing correction mechanism for the United Kingdom will continue to apply. 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%. Denmark, the Netherlands and Sweden will benefit from gross reductions in their annual GNI contribution of €130 million, €695 million and €185 million respectively. Austria will benefit from gross reduction in its annual GNI contribution of €30 million in 2014, €20 million in 2015 and €10 million in 2016. (LC/transl.jl)