Brussels, 31/01/2014 (Agence Europe) - The nomination of Mario Monti from Italy for the chair of the high-level group on EU own resources was endorsed by the leaders of the European Parliament's political groups on Thursday 30 January.
No date has yet been set for the first meeting of the high-level group - the creation of which was provided for as part of the decisions on the 2014-2020 multiannual financial framework. Next Wednesday 5 February, Coreper (the committee of permanent representatives of the member states to the EU) will discuss the people who will represent the Council at the high-level group meetings. The representatives from the other institutions have already been announced - from the European Parliament, Alain Lamassoure (EPP, France), Guy Verhofstadt (ALDE, Belgium) and Ivailo Kalfin (S&D, Bulgaria); and from the European Commission, Maros Sefcovic (Commissioner for Interinstitutional Relations and Administration), Janusz Lewandowski (Commissioner for Financial Programming and the Budget) and Algirdas Semeta (Commissioner for Taxation and Customs Union, Audit and Anti-Fraud).
After the conference of presidents of the Parliament's groups approving Monti's nomination, European Parliament President Martin Schulz stated: “The high-level group on own resources is a political priority for the European Parliament. Mario Monti has listened carefully to the European Parliament's main concerns on the future financing of the Union and I expect the detailed work of the group to get under way quickly. The current way in which the EU is financed can be considerably improved.”
Agreement on own resources package. On 22 January, Coreper reached a political agreement on the three legislative acts forming the own resources package (related to the 2014-2020 financial framework). This political agreement is the result - in legislative terms - of the European Council's conclusions on 8 February.
There are three types of own resources: (1) traditional own resources (mainly customs duties and sugar levies); (2) own resources based on value added tax (VAT). As a general rule, a uniform rate of 0.3% is collected on the harmonised VAT base of each member state. The VAT base is limited to 50% of each country's gross national income (GNI). The aim of this rule is to prevent less rich member states having to pay a disproportionate amount; (3) own resources based on the Gross National Income (GNI). A uniform percentage is taken from each EU member state's GNI and is used to fund the part of the EU budget which is not covered by other own resources, with the aim of balancing EU revenue with expenditure.
According to the terms of the Coreper agreement, the UK correction and the rebates on the financing of this correction are maintained. A reduced VAT call rate of 0.15% (rather than 0.30%) will apply from 2014-2020 to Germany, the Netherlands and Sweden. For some countries, the agreement provides for a reduction of their annual GNI-based payments for the period 2014-2020 - the Netherlands €695 million, Denmark €130 million, and Germany €185 million. Austria's annual GNI contribution will be reduced by €30 million in 2014, €20 million in 2015 and €10 million in 2016.
Member states will be allowed to retain only 20% (instead of 25%) of the traditional own resources to cover their collection costs.
The decision on own resources must be adopted unanimously by the European Council after consulting the European Parliament (plus ratification from the national parliaments). The regulation laying down implementing rules on own resources must be adopted by the Council by qualified majority, after receiving the European Parliament's consent. The regulation on how to make the own resources available must be adopted by the Council by qualified majority after consulting the European Parliament.
The Council will formally adopt the three legislative acts on own resources once the Parliament has given its consent. The rules will enter into force retroactively on 1 January 2014. (LC/transl.fl)