Brussels, 26/05/2014 (Agence Europe) - On Monday 26 May, the EU Council of Ministers endorsed without debate 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 agreement on own resources on 8 February for the 2014-2020 Financial Framework (see EUROPE 11009).
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.
Under 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 new rules will come into force with retroactive effect on 1 January 2015 once the own resource decision has been ratified by the member states. (LC)