BETA


1999/0139(CNS) Financing the Union 2000-2006: own resources, European Council, Berlin, March 1999

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead BUDG HAUG Jutta (icon: PES PES)
Former Responsible Committee BUDG HAUG Jutta (icon: PES PES)
Former Committee Opinion CONT MULDER Jan (icon: ELDR ELDR)
Lead committee dossier:
Legal Basis:
EC Treaty (after Amsterdam) EC 269

Events

2004/07/14
   EC - Follow-up document
Details

Article 9 of the current own resources decision calls on the Commission to "undertake, before 1 January 2006, a general review of the own resources system, accompanied, if necessary, by appropriate proposals, in the light of all relevant factors, including the effects of enlargement on the financing of the budget, the possibility of modifying the structure of the own resources by creating new autonomous own resources and the correction of budgetary imbalances granted to the United Kingdom as well as the granting to Austria, Germany, the Netherlands and Sweden of the reduction pursuant to Article 5(1)".

In response to a request from the European Parliament and in agreement with the Council, the Commission committed itself to present the abovementioned review on the functioning of the financing system before the end of 2004.

On 10 February 2004, the Commission adopted its communication on the Financial Perspective 2007-2013 . The communication identified two main elements of the current own resources system deserving closer attention: first, the insufficient transparency of the system for EU citizens combined with limited financial autonomy from national treasuries; secondly, the need to reform the existing mechanism for correction of negative budgetary imbalances.

In line with those orientations, this report provides an overview of the current system and its main drawbacks, proposes a generalised correction mechanism as a short term adjustment in order to address the main outstanding issue and outlines for the longer term an own resources structure that would be effective, transparent and democratic.

The main conclusions of the report are that:

The introduction of a new tax-based own resource replacing the current statistical VAT-based resource and financing a significant part of the EU budget would make it possible to overcome the main drawbacks of the current system, i.e. the absence of a direct link to EU citizens, overwhelming dependence on transfers from national treasuries and unjustified complexity. It could also contribute to a better allocation of economic resources in the EU. Even if accounting for a lower share of total own resources than under the current system, the GNI-based resource should continue to play an important role and ensure that the system reasonably fulfils all relevant criteria.

The Commission proposes three main candidates as possible future fiscal own resources: a resource based on 1) energy consumption, 2) national VAT bases and 3). corporate income.

- A resource based on energy consumption and conceived as an EU levy on motor fuel for road transport would be a sufficient and stable financing source for the EU budget and would create a direct link to the citizens. The tax base is already harmonised at EU level. It could be complemented by an EU levy on aviation fuel or the related emissions thus ending the current tax exemption for jet fuel and setting a price on the environmental costs of aviation.

- Tax base harmonisation in the field of VAT is quite advanced and it is a sufficient and stable source of revenue. A fiscal VAT resource would make the financing of the EU highly visible to EU citizens. It would also be evolutionary, since it would entail a reform of existing provisions rather than the introduction of a completely new resource. From an administrative point of view, its introduction would not present any insurmountable difficulties.

- Due to the link to a common EU policy and the presence of cross-border externalities, revenue from a harmonised company tax base would also be a suitable financing source for the EU budget.

- The European Union is a Union of Member States and citizens. Any of the three candidates for fiscal own resources examined above would transpose this concept into the area of financing the EU budget. Strengthening the direct link of citizens to the budget would also help focussing expenditure debates on substance rather than on purely "national" budget "net positions".

- Obviously, any new assignment of a resource to the EU budget has not only to be decided unanimously by Council, but also has to be ratified by all Member States´ parliaments.

- The implementation of an energy- or VAT-based resource would be feasible over the medium-term, whereas a fiscal resource based on corporate income is to be seen as a much longer-term option. What is needed now is a political orientation to prepare the conditions for reforming the structure of the existing own resources. In this regard, the Commission calls on the Council:

a) to discuss the options proposed in this report;

b) to take note of the Commission’s intention to prepare a roadmap in view of replacing, on the basis of a Commission proposal, the current VAT resource by a genuinely tax-based own resource by 2014.

In order to provide a short-term solution to the issue of excessive budgetary imbalances to be operational as from the beginning of the next Financial Perspective, the Commission proposes to introduce a generalized correction mechanism to correct excessive budgetary imbalances according to the proposed Council decision on the system of own resources and the accompanying proposed implementing measures.

2002/02/12
   CSL - Council Meeting
2001/12/28
   EC - Follow-up document
2000/10/07
   Final act published in Official Journal
2000/09/29
   EP/CSL - Act adopted by Council after consultation of Parliament
2000/09/29
   EP - End of procedure in Parliament
2000/09/29
   CSL - Council Meeting
2000/09/21
   EP - Text adopted by Parliament after reconsultation
2000/09/21
   EP - Decision by Parliament
Documents
2000/09/04
   EP - Committee final report tabled for plenary, reconsultation
2000/09/04
   EP - Vote in committee
2000/09/03
   EP - Committee report tabled for plenary, reconsultation
Documents
2000/05/08
   EP/CSL - Formal reconsultation of Parliament
2000/05/08
   CSL - Council Meeting
2000/04/17
   CSL - Amended legislative proposal for reconsultation
Documents
2000/04/16
   EC - Amended legislative proposal for reconsultation published
Documents
1999/11/17
   EP - Text adopted by Parliament, 1st reading/single reading
1999/11/17
   EP - Decision by Parliament
Documents
1999/11/16
   EP - Debate in Parliament
1999/11/08
   EP - Committee report tabled for plenary, 1st reading/single reading
1999/11/08
   EP - Vote in committee
1999/11/07
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
1999/10/20
   ESC - Economic and Social Committee: opinion, report
1999/10/13
   EP - MULDER Jan (ELDR) appointed as rapporteur in CONT
1999/09/22
   EP - HAUG Jutta (PES) appointed as rapporteur in BUDG
1999/09/22
   EP - HAUG Jutta (PES) appointed as rapporteur in BUDG
1999/09/13
   EP - Committee referral announced in Parliament
1999/07/08
   EC - Legislative proposal
1999/07/07
   EC - Legislative proposal published

Documents

History

(these mark the time of scraping, not the official date of the change)

docs/1
date
1999-10-12T00:00:00
docs
title: PE231.576
type
Committee draft report
body
EP
docs/2
date
1999-11-08T00:00:00
docs
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
docs/2/docs/1/url
Old
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C:2000:189:TOC
New
https://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2000:189:SOM:EN:HTML
docs/3
date
1999-10-22T00:00:00
docs
title: PE231.576/AM
type
Amendments tabled in committee
body
EP
docs/4
date
2000-04-17T00:00:00
docs
url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=ADV&RESULTSET=1&DOC_ID=7439%2F00&DOC_LANCD=EN&ROWSPP=25&NRROWS=500&ORDERBY=DOC_DATE+DESC title: 07439/2000
summary
type
Amended legislative proposal for reconsultation
body
CSL
docs/4
date
1999-11-04T00:00:00
docs
title: PE232.052/DEF
committee
CONT
type
Committee opinion
body
EP
docs/5
date
1999-11-08T00:00:00
docs
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
docs/7
date
2000-07-25T00:00:00
docs
title: PE289.589
type
Committee draft report
body
EP
events/0/date
Old
1999-07-08T00:00:00
New
1999-07-07T00:00:00
events/3/date
Old
1999-11-08T00:00:00
New
1999-11-07T00:00:00
events/6/date
Old
2000-04-17T00:00:00
New
2000-04-16T00:00:00
events/9/date
Old
2000-09-04T00:00:00
New
2000-09-03T00:00:00
events/13/docs/1/url
Old
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2000:253:TOC
New
https://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2000:253:SOM:EN:HTML
docs/2/docs/0/url
Old
https://dm.eesc.europa.eu/EESCDocumentSearch/Pages/redresults.aspx?k=(documenttype:AC)(documentnumber:0937)(documentyear:1999)(documentlanguage:EN)
New
https://dmsearch.eesc.europa.eu/search/public?k=(documenttype:AC)(documentnumber:0937)(documentyear:1999)(documentlanguage:EN)
docs/5/docs/0/url
Old
http://www.europarl.europa.eu/doceo/document/A-5-1999-0052_EN.html
New
https://www.europarl.europa.eu/doceo/document/A-5-1999-0052_EN.html
docs/6
date
1999-11-17T00:00:00
docs
summary
type
Text adopted by Parliament, 1st reading/single reading
body
EP
docs/6
date
1999-11-17T00:00:00
docs
summary
type
Text adopted by Parliament, 1st reading/single reading
body
EP
docs/8
date
2000-09-04T00:00:00
docs
type
Committee final report tabled for plenary, reconsultation
body
EP
docs/8
date
2000-09-04T00:00:00
docs
type
Committee final report tabled for plenary, reconsultation
body
EP
docs/9
date
2000-09-21T00:00:00
docs
summary
type
Text adopted by Parliament after reconsultation
body
EP
docs/9
date
2000-09-21T00:00:00
docs
summary
type
Text adopted by Parliament after reconsultation
body
EP
docs/11/docs/0/url
Old
http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2004/0505/COM_COM(2004)0505_EN.pdf
New
http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/com/2004/0505/COM_COM(2004)0505_EN.pdf
events/1/type
Old
Committee referral announced in Parliament, 1st reading/single reading
New
Committee referral announced in Parliament
events/2/type
Old
Vote in committee, 1st reading/single reading
New
Vote in committee
events/3/docs/0/url
Old
http://www.europarl.europa.eu/doceo/document/A-5-1999-0052_EN.html
New
https://www.europarl.europa.eu/doceo/document/A-5-1999-0052_EN.html
events/4/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=19991116&type=CRE
New
https://www.europarl.europa.eu/doceo/document/EN&reference=19991116&type=CRE
events/5
date
1999-11-17T00:00:00
type
Decision by Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-5-1999-0102_EN.html title: T5-0102/1999
summary
events/5
date
1999-11-17T00:00:00
type
Decision by Parliament, 1st reading/single reading
body
EP
docs
url: http://www.europarl.europa.eu/doceo/document/TA-5-1999-0102_EN.html title: T5-0102/1999
summary
events/8/type
Old
Vote in committee, 1st reading/single reading
New
Vote in committee
events/9/docs/0/url
Old
http://www.europarl.europa.eu/doceo/document/A-5-2000-0224_EN.html
New
https://www.europarl.europa.eu/doceo/document/A-5-2000-0224_EN.html
events/10
date
2000-09-21T00:00:00
type
Decision by Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-5-2000-0393_EN.html title: T5-0393/2000
summary
events/10
date
2000-09-21T00:00:00
type
Decision by Parliament, 1st reading/single reading
body
EP
docs
url: http://www.europarl.europa.eu/doceo/document/TA-5-2000-0393_EN.html title: T5-0393/2000
summary
events/13/docs/1/url
Old
https://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2000:253:SOM:EN:HTML
New
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2000:253:TOC
committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Budgets
committee
BUDG
rapporteur
name: HAUG Jutta date: 1999-09-22T00:00:00 group: Party of European Socialists abbr: PES
committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Budgets
committee
BUDG
date
1999-09-22T00:00:00
rapporteur
name: HAUG Jutta group: Party of European Socialists abbr: PES
committees/1
type
Former Responsible Committee
body
EP
associated
False
committee_full
Budgets
committee
BUDG
rapporteur
name: HAUG Jutta date: 1999-09-22T00:00:00 group: Party of European Socialists abbr: PES
committees/1
type
Former Responsible Committee
body
EP
associated
False
committee_full
Budgets
committee
BUDG
date
1999-09-22T00:00:00
rapporteur
name: HAUG Jutta group: Party of European Socialists abbr: PES
committees/2
type
Former Committee Opinion
body
EP
associated
False
committee_full
Budgetary Control
committee
CONT
rapporteur
name: MULDER Jan date: 1999-10-13T00:00:00 group: European Liberal Democrat and Reform Party abbr: ELDR
committees/2
type
Former Committee Opinion
body
EP
associated
False
committee_full
Budgetary Control
committee
CONT
date
1999-10-13T00:00:00
rapporteur
name: MULDER Jan group: European Liberal Democrat and Reform Party abbr: ELDR
docs/2/docs/1/url
Old
https://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:1999:368:SOM:EN:HTML
New
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C:1999:368:TOC
docs/5
date
1999-11-08T00:00:00
docs
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
docs/5
date
1999-11-08T00:00:00
docs
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
docs/6
date
1999-11-17T00:00:00
docs
summary
type
Text adopted by Parliament, 1st reading/single reading
body
EP
docs/6
date
1999-11-17T00:00:00
docs
summary
type
Text adopted by Parliament, 1st reading/single reading
body
EP
docs/8/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2000-224&language=EN
New
http://www.europarl.europa.eu/doceo/document/A-5-2000-0224_EN.html
docs/9
date
2000-09-21T00:00:00
docs
summary
type
Text adopted by Parliament after reconsultation
body
EP
docs/9
date
2000-09-21T00:00:00
docs
summary
type
Text adopted by Parliament after reconsultation
body
EP
events/3/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-1999-52&language=EN
New
http://www.europarl.europa.eu/doceo/document/A-5-1999-0052_EN.html
events/5/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-1999-102
New
http://www.europarl.europa.eu/doceo/document/TA-5-1999-0102_EN.html
events/9/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2000-224&language=EN
New
http://www.europarl.europa.eu/doceo/document/A-5-2000-0224_EN.html
events/10/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-2000-393
New
http://www.europarl.europa.eu/doceo/document/TA-5-2000-0393_EN.html
events/13/docs/1/url
Old
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2000:253:TOC
New
https://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2000:253:SOM:EN:HTML
docs/8/docs/1/url
Old
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C:2001:146:TOC
New
https://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2001:146:SOM:EN:HTML
activities
  • date: 1999-07-08T00:00:00 docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=1999&nu_doc=333 title: COM(1999)0333 type: Legislative proposal published celexid: CELEX:51999PC0333:EN body: EC commission: DG: url: http://ec.europa.eu/dgs/budget/ title: Budget type: Legislative proposal published
  • date: 1999-09-13T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP responsible: True committee: BUDG date: 1999-09-22T00:00:00 committee_full: Budgets rapporteur: group: PSE name: HAUG Jutta body: EP responsible: False committee: CONT date: 1999-10-13T00:00:00 committee_full: Budgetary Control rapporteur: group: ELDR name: MULDER Jan
  • body: EP committees: body: EP responsible: True committee: BUDG date: 1999-09-22T00:00:00 committee_full: Budgets rapporteur: group: PSE name: HAUG Jutta body: EP responsible: False committee: CONT date: 1999-10-13T00:00:00 committee_full: Budgetary Control rapporteur: group: ELDR name: MULDER Jan docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-1999-52&language=EN type: Committee report tabled for plenary, 1st reading/single reading title: A5-0052/1999 date: 1999-11-08T00:00:00 type: Vote in committee, 1st reading/single reading
  • date: 1999-11-16T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=19991116&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
  • date: 1999-11-17T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-1999-102 type: Decision by Parliament, 1st reading/single reading title: T5-0102/1999 body: EP type: Decision by Parliament, 1st reading/single reading
  • date: 2000-04-17T00:00:00 docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=ADV&RESULTSET=1&DOC_ID=7439%2F00&DOC_LANCD=EN&ROWSPP=25&NRROWS=500&ORDERBY=DOC_DATE+DESC type: Amended legislative proposal for reconsultation published title: 07439/2000 body: EC commission: DG: url: http://ec.europa.eu/dgs/budget/ title: Budget type: Amended legislative proposal for reconsultation published
  • date: 2000-05-08T00:00:00 body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 2258
  • date: 2000-05-08T00:00:00 body: EP/CSL type: Formal reconsultation of Parliament
  • date: 2000-09-04T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2000-224&language=EN type: Committee report tabled for plenary, reconsultation title: A5-0224/2000 body: unknown type: Committee report tabled for plenary, reconsultation
  • date: 2000-09-04T00:00:00 body: EP committees: body: EP responsible: True committee: BUDG date: 1999-09-22T00:00:00 committee_full: Budgets rapporteur: group: PSE name: HAUG Jutta body: EP responsible: False committee: CONT date: 1999-10-13T00:00:00 committee_full: Budgetary Control rapporteur: group: ELDR name: MULDER Jan type: Vote in committee, 1st reading/single reading
  • date: 2000-09-21T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-2000-393 type: Decision by Parliament, 1st reading/single reading title: T5-0393/2000 body: EP type: Decision by Parliament, 1st reading/single reading
  • date: 2000-09-29T00:00:00 body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 2290
  • date: 2000-09-29T00:00:00 body: EP type: End of procedure in Parliament
  • date: 2000-09-29T00:00:00 body: EP/CSL type: Act adopted by Council after consultation of Parliament
  • date: 2000-10-07T00:00:00 type: Final act published in Official Journal docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32000D0597 title: Decision 2000/597 url: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2000:253:TOC title: OJ L 253 07.10.2000, p. 0042
  • date: 2002-02-12T00:00:00 body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 2407
commission
  • body: EC dg: Budget commissioner: --
committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Budgets
committee
BUDG
date
1999-09-22T00:00:00
rapporteur
name: HAUG Jutta group: Party of European Socialists abbr: PES
committees/0
body
EP
responsible
True
committee
BUDG
date
1999-09-22T00:00:00
committee_full
Budgets
rapporteur
group: PSE name: HAUG Jutta
committees/1
type
Former Responsible Committee
body
EP
associated
False
committee_full
Budgets
committee
BUDG
date
1999-09-22T00:00:00
rapporteur
name: HAUG Jutta group: Party of European Socialists abbr: PES
committees/1
body
EP
responsible
False
committee
CONT
date
1999-10-13T00:00:00
committee_full
Budgetary Control
rapporteur
group: ELDR name: MULDER Jan
committees/2
type
Former Committee Opinion
body
EP
associated
False
committee_full
Budgetary Control
committee
CONT
date
1999-10-13T00:00:00
rapporteur
name: MULDER Jan group: European Liberal Democrat and Reform Party abbr: ELDR
council
  • body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 2407 url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=2407*&MEET_DATE=12/02/2002 date: 2002-02-12T00:00:00
  • body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 2290 url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=2290*&MEET_DATE=29/09/2000 date: 2000-09-29T00:00:00
  • body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 2258 url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=2258*&MEET_DATE=08/05/2000 date: 2000-05-08T00:00:00
docs
  • date: 1999-07-08T00:00:00 docs: url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=1999&nu_doc=333 title: EUR-Lex url: https://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:1999:274E:SOM:EN:HTML title: OJ C 274 28.09.1999, p. 0039 E title: COM(1999)0333 summary: type: Legislative proposal body: EC
  • date: 1999-10-12T00:00:00 docs: title: PE231.576 type: Committee draft report body: EP
  • date: 1999-10-20T00:00:00 docs: url: https://dm.eesc.europa.eu/EESCDocumentSearch/Pages/redresults.aspx?k=(documenttype:AC)(documentnumber:0937)(documentyear:1999)(documentlanguage:EN) title: CES0937/1999 url: https://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:1999:368:SOM:EN:HTML title: OJ C 368 20.12.1999, p. 0016 type: Economic and Social Committee: opinion, report body: ESC
  • date: 1999-10-22T00:00:00 docs: title: PE231.576/AM type: Amendments tabled in committee body: EP
  • date: 1999-11-04T00:00:00 docs: title: PE232.052/DEF committee: CONT type: Committee opinion body: EP
  • date: 1999-11-08T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-1999-52&language=EN title: A5-0052/1999 url: https://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2000:189:SOM:EN:HTML title: OJ C 189 07.07.2000, p. 0005 type: Committee report tabled for plenary, 1st reading/single reading body: EP
  • date: 1999-11-17T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-1999-102 title: T5-0102/1999 url: https://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2000:189:SOM:EN:HTML title: OJ C 189 07.07.2000, p. 0055-0072 summary: type: Text adopted by Parliament, 1st reading/single reading body: EP
  • date: 2000-07-25T00:00:00 docs: title: PE289.589 type: Committee draft report body: EP
  • date: 2000-09-04T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2000-224&language=EN title: A5-0224/2000 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C:2001:146:TOC title: OJ C 146 17.05.2001, p. 0004 type: Committee final report tabled for plenary, reconsultation body: EP
  • date: 2000-09-21T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-2000-393 title: T5-0393/2000 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C:2001:146:TOC title: OJ C 146 17.05.2001, p. 0017-0074 summary: type: Text adopted by Parliament after reconsultation body: EP
  • date: 2001-12-28T00:00:00 docs: url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2001&nu_doc=801 title: EUR-Lex title: COM(2001)0801 summary: type: Follow-up document body: EC
  • date: 2004-07-14T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2004/0505/COM_COM(2004)0505_EN.pdf title: COM(2004)0505 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2004&nu_doc=505 title: EUR-Lex summary: Article 9 of the current own resources decision calls on the Commission to "undertake, before 1 January 2006, a general review of the own resources system, accompanied, if necessary, by appropriate proposals, in the light of all relevant factors, including the effects of enlargement on the financing of the budget, the possibility of modifying the structure of the own resources by creating new autonomous own resources and the correction of budgetary imbalances granted to the United Kingdom as well as the granting to Austria, Germany, the Netherlands and Sweden of the reduction pursuant to Article 5(1)". In response to a request from the European Parliament and in agreement with the Council, the Commission committed itself to present the abovementioned review on the functioning of the financing system before the end of 2004. On 10 February 2004, the Commission adopted its communication on the Financial Perspective 2007-2013 . The communication identified two main elements of the current own resources system deserving closer attention: first, the insufficient transparency of the system for EU citizens combined with limited financial autonomy from national treasuries; secondly, the need to reform the existing mechanism for correction of negative budgetary imbalances. In line with those orientations, this report provides an overview of the current system and its main drawbacks, proposes a generalised correction mechanism as a short term adjustment in order to address the main outstanding issue and outlines for the longer term an own resources structure that would be effective, transparent and democratic. The main conclusions of the report are that: The introduction of a new tax-based own resource replacing the current statistical VAT-based resource and financing a significant part of the EU budget would make it possible to overcome the main drawbacks of the current system, i.e. the absence of a direct link to EU citizens, overwhelming dependence on transfers from national treasuries and unjustified complexity. It could also contribute to a better allocation of economic resources in the EU. Even if accounting for a lower share of total own resources than under the current system, the GNI-based resource should continue to play an important role and ensure that the system reasonably fulfils all relevant criteria. The Commission proposes three main candidates as possible future fiscal own resources: a resource based on 1) energy consumption, 2) national VAT bases and 3). corporate income. - A resource based on energy consumption and conceived as an EU levy on motor fuel for road transport would be a sufficient and stable financing source for the EU budget and would create a direct link to the citizens. The tax base is already harmonised at EU level. It could be complemented by an EU levy on aviation fuel or the related emissions thus ending the current tax exemption for jet fuel and setting a price on the environmental costs of aviation. - Tax base harmonisation in the field of VAT is quite advanced and it is a sufficient and stable source of revenue. A fiscal VAT resource would make the financing of the EU highly visible to EU citizens. It would also be evolutionary, since it would entail a reform of existing provisions rather than the introduction of a completely new resource. From an administrative point of view, its introduction would not present any insurmountable difficulties. - Due to the link to a common EU policy and the presence of cross-border externalities, revenue from a harmonised company tax base would also be a suitable financing source for the EU budget. - The European Union is a Union of Member States and citizens. Any of the three candidates for fiscal own resources examined above would transpose this concept into the area of financing the EU budget. Strengthening the direct link of citizens to the budget would also help focussing expenditure debates on substance rather than on purely "national" budget "net positions". - Obviously, any new assignment of a resource to the EU budget has not only to be decided unanimously by Council, but also has to be ratified by all Member States´ parliaments. - The implementation of an energy- or VAT-based resource would be feasible over the medium-term, whereas a fiscal resource based on corporate income is to be seen as a much longer-term option. What is needed now is a political orientation to prepare the conditions for reforming the structure of the existing own resources. In this regard, the Commission calls on the Council: a) to discuss the options proposed in this report; b) to take note of the Commission’s intention to prepare a roadmap in view of replacing, on the basis of a Commission proposal, the current VAT resource by a genuinely tax-based own resource by 2014. In order to provide a short-term solution to the issue of excessive budgetary imbalances to be operational as from the beginning of the next Financial Perspective, the Commission proposes to introduce a generalized correction mechanism to correct excessive budgetary imbalances according to the proposed Council decision on the system of own resources and the accompanying proposed implementing measures. type: Follow-up document body: EC
events
  • date: 1999-07-08T00:00:00 type: Legislative proposal published body: EC docs: url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=1999&nu_doc=333 title: EUR-Lex title: COM(1999)0333 summary:
  • date: 1999-09-13T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 1999-11-08T00:00:00 type: Vote in committee, 1st reading/single reading body: EP summary:
  • date: 1999-11-08T00:00:00 type: Committee report tabled for plenary, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-1999-52&language=EN title: A5-0052/1999
  • date: 1999-11-16T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=19991116&type=CRE title: Debate in Parliament
  • date: 1999-11-17T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-1999-102 title: T5-0102/1999 summary:
  • date: 2000-04-17T00:00:00 type: Amended legislative proposal for reconsultation published body: EC docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=ADV&RESULTSET=1&DOC_ID=7439%2F00&DOC_LANCD=EN&ROWSPP=25&NRROWS=500&ORDERBY=DOC_DATE+DESC title: 07439/2000 summary:
  • date: 2000-05-08T00:00:00 type: Formal reconsultation of Parliament body: EP/CSL
  • date: 2000-09-04T00:00:00 type: Vote in committee, 1st reading/single reading body: EP summary:
  • date: 2000-09-04T00:00:00 type: Committee report tabled for plenary, reconsultation body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2000-224&language=EN title: A5-0224/2000
  • date: 2000-09-21T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-2000-393 title: T5-0393/2000 summary:
  • date: 2000-09-29T00:00:00 type: Act adopted by Council after consultation of Parliament body: EP/CSL
  • date: 2000-09-29T00:00:00 type: End of procedure in Parliament body: EP
  • date: 2000-10-07T00:00:00 type: Final act published in Official Journal docs: title: Decision 2000/597 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32000D0597 title: OJ L 253 07.10.2000, p. 0042 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2000:253:TOC
other
  • body: CSL type: Council Meeting council: Former Council configuration
  • body: EC dg: url: http://ec.europa.eu/dgs/budget/ title: Budget
procedure/dossier_of_the_committee
Old
BUDG/5/12075;BUDG/5/12763
New
  • BUDG/5/12075
  • BUDG/5/12763
procedure/final/url
Old
http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32000D0597
New
https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32000D0597
procedure/instrument
Old
Decision
New
  • Decision
  • See also 2008/0089(CNS)
procedure/subject
Old
  • 8.70.01 Financing of the budget, own resources
New
8.70.01
Financing of the budget, own resources
procedure/summary
  • See also
activities/14/docs/1/url
Old
http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2000:253:SOM:EN:HTML
New
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2000:253:TOC
links/European Commission/title
Old
PreLex
New
EUR-Lex
activities
  • date: 1999-07-08T00:00:00 docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=1999&nu_doc=333 celexid: CELEX:51999PC0333:EN type: Legislative proposal published title: COM(1999)0333 type: Legislative proposal published body: EC commission: DG: url: http://ec.europa.eu/dgs/budget/ title: Budget
  • date: 1999-09-13T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP responsible: True committee: BUDG date: 1999-09-22T00:00:00 committee_full: Budgets rapporteur: group: PSE name: HAUG Jutta body: EP responsible: False committee: CONT date: 1999-10-13T00:00:00 committee_full: Budgetary Control rapporteur: group: ELDR name: MULDER Jan
  • body: EP committees: body: EP responsible: True committee: BUDG date: 1999-09-22T00:00:00 committee_full: Budgets rapporteur: group: PSE name: HAUG Jutta body: EP responsible: False committee: CONT date: 1999-10-13T00:00:00 committee_full: Budgetary Control rapporteur: group: ELDR name: MULDER Jan docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-1999-52&language=EN type: Committee report tabled for plenary, 1st reading/single reading title: A5-0052/1999 date: 1999-11-08T00:00:00 type: Vote in committee, 1st reading/single reading
  • date: 1999-11-16T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=19991116&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
  • date: 1999-11-17T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-1999-102 type: Decision by Parliament, 1st reading/single reading title: T5-0102/1999 body: EP type: Decision by Parliament, 1st reading/single reading
  • date: 2000-04-17T00:00:00 docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=ADV&RESULTSET=1&DOC_ID=7439%2F00&DOC_LANCD=EN&ROWSPP=25&NRROWS=500&ORDERBY=DOC_DATE+DESC type: Amended legislative proposal for reconsultation published title: 07439/2000 type: Amended legislative proposal for reconsultation published body: EC commission: DG: url: http://ec.europa.eu/dgs/budget/ title: Budget
  • date: 2000-05-08T00:00:00 body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 2258
  • date: 2000-05-08T00:00:00 body: EP/CSL type: Formal reconsultation of Parliament
  • date: 2000-09-04T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2000-224&language=EN type: Committee report tabled for plenary, reconsultation title: A5-0224/2000 body: unknown type: Committee report tabled for plenary, reconsultation
  • date: 2000-09-04T00:00:00 body: EP committees: body: EP responsible: True committee: BUDG date: 1999-09-22T00:00:00 committee_full: Budgets rapporteur: group: PSE name: HAUG Jutta body: EP responsible: False committee: CONT date: 1999-10-13T00:00:00 committee_full: Budgetary Control rapporteur: group: ELDR name: MULDER Jan type: Vote in committee, 1st reading/single reading
  • date: 2000-09-21T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-2000-393 type: Decision by Parliament, 1st reading/single reading title: T5-0393/2000 body: EP type: Decision by Parliament, 1st reading/single reading
  • date: 2000-09-29T00:00:00 body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 2290
  • date: 2000-09-29T00:00:00 body: EP type: End of procedure in Parliament
  • date: 2000-09-29T00:00:00 body: EP/CSL type: Act adopted by Council after consultation of Parliament
  • date: 2000-10-07T00:00:00 type: Final act published in Official Journal docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32000D0597 title: Decision 2000/597 url: http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2000:253:SOM:EN:HTML title: OJ L 253 07.10.2000, p. 0042
  • date: 2002-02-12T00:00:00 body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 2407
committees
  • body: EP responsible: True committee: BUDG date: 1999-09-22T00:00:00 committee_full: Budgets rapporteur: group: PSE name: HAUG Jutta
  • body: EP responsible: False committee: CONT date: 1999-10-13T00:00:00 committee_full: Budgetary Control rapporteur: group: ELDR name: MULDER Jan
links
European Commission
other
  • body: CSL type: Council Meeting council: Former Council configuration
  • body: EC dg: url: http://ec.europa.eu/dgs/budget/ title: Budget
procedure
dossier_of_the_committee
BUDG/5/12075;BUDG/5/12763
reference
1999/0139(CNS)
instrument
Decision
legal_basis
EC Treaty (after Amsterdam) EC 269
stage_reached
Procedure completed
summary
See also
subtype
Legislation
title
Financing the Union 2000-2006: own resources, European Council, Berlin, March 1999
type
CNS - Consultation procedure
final
subject
8.70.01 Financing of the budget, own resources