The European Commission intends to present a balanced package of new own resources, by the end of 2021, with reliable revenue streams to ensure the repayment of the EU’s post-pandemic recovery plan, Commissioner for Budget Johannes Hahn said on Tuesday 31 August.
Members of the European Parliament’s Committee on Budgets have been highly critical of the Commission’s decision to postpone the adoption of proposals on new own resources for the EU budget (see EUROPE 12766/17).
Commissioner Hahn said that, from a personal point of view, he had been in favour of presenting the proposals in July, but the majority view in the Commission was that they should be postponed to take account of the agreement on international tax reform (see EUROPE 12760/15).
“What really counts in the end is the result”, was Hahn’s attempted justification, pointing out that the repayment of Next Generation EU funds will start in 2028. He estimated that an agreement within the OECD on the digital levy could be reached in October, and the Commission’s proposals will take this into account, according to Hahn.
Mr Hahn stressed that the package must be balanced to allow for an agreement at EU Member State level. The Commissioner said that the package would be made up of the three new own resources provided for in order to have enough money to pay for the recovery plan. The Commission plans to propose a border adjustment mechanism, a digital levy, and an own resource based on the EU Emissions Trading System.
José Manuel Fernandes (EPP, Portugal), rapporteur on the subject, said “we have a roadmap in the Interinstitutional Agreement and the Commission must respect the law and set an example”. He added that without own resources, there would not be enough money to pay what is owed for the Next Generation EU.
Valérie Hayer (Renew Europe, France), another rapporteur, found the Commission’s attitude unacceptable. Hayer insisted that work had to begin now. She expressed disappointment about the amounts that could come from the future Carbon Border Adjustment Mechanism.
Several MEPs criticised the delays in presenting proposals on new own resources. In addition, the ‘Fit for 55’ climate package contains proposals for a new EU Emissions Trading System (ETS) to cover emissions from space heating and road transport (see EUROPE 12764/11).
In the negotiations on the EU’s 2021-2027 Multiannual Financial Framework (MFF), the European Parliament and Member State negotiators agreed on a ‘roadmap’ for the introduction of new revenues. This roadmap is part of the Interinstitutional Agreement on the budget, a legally binding text. (Original version in French by Lionel Changeur)