BETA


2021/0161(NLE) Predictability for Member States and procedures for dispute resolution when making available the traditional, VAT and GNI based own resources

Progress: Awaiting final decision

RoleCommitteeRapporteurShadows
Lead BUDG FERNANDES José Manuel (icon: EPP EPP), HAYER Valérie (icon: Renew Renew)
Lead committee dossier:
Legal Basis:
Euratom Treaty A 106a-pa, TFEU 322-p2

Events

2022/02/18
   EC - Commission response to text adopted in plenary
Documents
2021/12/14
   EP - Results of vote in Parliament
2021/12/14
   EP - Decision by Parliament
Details

The European Parliament adopted by 516 votes to 116, with 30 abstentions, a legislative resolution on the proposal for a Council regulation European Parliament legislative on the proposal for a Council regulation amending Regulation (EU, Euratom) No 609/2014 in order to enhance predictability for Member States and to clarify procedures for dispute resolution when making available the traditional, VAT and GNI based own resources.

The proposal aims to amend Council Regulation (EU, Euratom) No 609/2014 in order to establish the necessary provisions to determine the modalities and procedures for making own resources available. To this end, it sets out a system designed to ensure regular and timely payments to the Union's budget.

Parliament approved the Commission's proposal subject to amendments to delete the paragraphs, recitals and references which relate to the proposed changes in the Commission's text concerning the method of calculating interest on late payments and the review procedure in the event of disagreement between a Member State and the Commission as referred to in Article 13(5) or concerning other amounts of traditional own resources due to the Union budget.

Documents
2021/12/10
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
2021/12/10
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
2021/12/09
   EP - Vote in committee
2021/10/20
   EP - Committee draft report
Documents
2021/09/22
   CofA - Court of Auditors: opinion, report
2021/07/14
   EP - FERNANDES José Manuel (EPP) appointed as rapporteur in BUDG
2021/07/14
   EP - HAYER Valérie (Renew) appointed as rapporteur in BUDG
2021/07/08
   EP - Committee referral announced in Parliament
2021/06/25
   EC - Legislative proposal published
Details

PURPOSE: to enhance predictability for Member States and to clarify procedures for dispute resolution when making available the traditional, VAT and GNI based own resource.

PROPOSED ACT: Council Regulation.

ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.

BACKGROUND: while Council Regulation (EU, Euratom) No 609/2014 has provided a solid and stable anchor for the Union's financing mechanisms, the provisions on making own resources available need to be improved in order to increase predictability for Member States and clarify procedures for dispute resolution disputes.

In preparing this proposal, the Commission sent a detailed questionnaire to the Member States, the European Parliament and the European Court of Auditors to assess the content and practical functioning of Council Regulation (EU, Euratom) No 609/2014. The replies to this questionnaire confirmed the overall smooth functioning of the Regulation. However, Member States also made several requests for improvement.

CONTENT: the proposal aims to amend Council Regulation (EU, Euratom) No 609/2014 in order to establish the necessary provisions to determine the modalities and procedures for making own resources available. To this end, it sets out a carefully calibrated system to ensure regular and timely payments to the EU budget.

In concrete terms, the proposal:

- provides for the possibility for the Commission to set up a centralised ‘own resources’ account with a view to increasing efficiency and establishing a common approach to cash management;

- gives Member States the possibility, on a case-by-case basis, to make advance payments after having informed the Commission in advance;

- modifies the annual balances adjustment and postpones the making available by Member States of the adjustments to year N+2 in order to facilitate the national budgetary procedures;

- modifies the rules on interest on late payments: Council Regulation (EU, Euratom) 2016/804 had already capped the increase in interest above the base rate to 16 percentage points. The present proposal extends the capping on the increase of interests to all cases. In addition, it also raises the threshold to waive interest from EUR 500 to EUR 1,000. In addition, a time limit of 10 years is introduced for keeping traditional own resources amounts in the B accounts;

- amends the provisions of Regulation (EU, Euratom) No 609/2014 on irrecoverable amounts so as to introduce a general time limit for amounts to be taken out of that separate account to ensure that the cases in this separate account are regularly reviewed;

- establishes additional procedural deadlines for the Commission and the Member States to ensure timely follow-up of write-off reports and to support a swift and fully transparent assessment of the Member State’s decision not to make the irrecoverable amount of traditional own resources available, further procedural deadlines for the Commission and Member States should be introduced;

- formally establishes a review procedure to improve transparency and clarify Member States' rights of defence in cases of disagreement between Member States and the Commission on the making available of traditional own resources;

- introduces provisions to reflect the current practice of the payment under reservation, which opens the possibility to initiate an action for unjust enrichment against the Commission;

- includes Germany to the beneficiaries of lump-sum corrections, while the reference to the UK correction is deleted.

Budgetary implications

The proposal would not change the human and administrative resources required compared to Council Regulation (EU, Euratom) No 609/2014. However, the extension of the cap on the interest rate increase to all cases will lead to a decrease in the interest revenue collected for the EU budget. Its financial impact, based on reference amounts of the past years (as from the entry into force of Council Regulation (EU, Euratom) 2016/804) is estimated at EUR 27.5 million/year.

Documents

Votes

Prévisibilité pour les États membres et procédures de résolution des contentieux lors de la mise à disposition des ressources propres traditionnelles, de la ressource propre fondée sur la TVA et de la ressource propre fondée sur le RNB - Predictability for Member States and procedures for dispute resolution when making available the traditional, VAT and GNI based own resources - Vorhersehbarkeit für die Mitgliedstaaten und Verfahren für die Streitbeilegung bei der Bereitstellung der traditionellen, der MwSt.- und der BNE-Eigenmittel - A9-0347/2021 - José Manuel Fernandes, Valerie Hayer - Proposition de la Commission et amendements #

2021/12/14 Outcome: +: 551, -: 116, 0: 30
DE ES IT FR RO HU NL SE BG PT EL AT IE DK FI HR LT BE CZ SK SI MT CY LU EE LV PL
Total
92
59
75
78
33
21
29
20
17
21
20
19
13
14
14
12
11
21
21
14
8
6
6
6
7
8
52
icon: PPE PPE
176

Hungary PPE

1

Denmark PPE

For (1)

1

Malta PPE

2
2

Luxembourg PPE

2

Estonia PPE

For (1)

1

Latvia PPE

2
icon: S&D S&D
143

Greece S&D

2

Lithuania S&D

2

Czechia S&D

For (1)

1

Slovenia S&D

2

Cyprus S&D

2

Luxembourg S&D

For (1)

1

Estonia S&D

2

Latvia S&D

2
icon: Renew Renew
100

Italy Renew

3

Hungary Renew

2
3

Austria Renew

For (1)

1

Ireland Renew

2

Finland Renew

3

Croatia Renew

For (1)

1

Lithuania Renew

1

Slovenia Renew

2

Luxembourg Renew

2

Estonia Renew

3

Latvia Renew

For (1)

1

Poland Renew

1
icon: Verts/ALE Verts/ALE
71

Spain Verts/ALE

3

Netherlands Verts/ALE

3

Sweden Verts/ALE

3

Portugal Verts/ALE

1

Austria Verts/ALE

3

Ireland Verts/ALE

2

Denmark Verts/ALE

2

Finland Verts/ALE

3

Lithuania Verts/ALE

2

Belgium Verts/ALE

3

Czechia Verts/ALE

3

Luxembourg Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Poland Verts/ALE

For (1)

1
icon: The Left The Left
38

Netherlands The Left

Abstain (1)

1

Sweden The Left

For (1)

1

Portugal The Left

4

Denmark The Left

1

Finland The Left

For (1)

1

Belgium The Left

For (1)

1

Czechia The Left

1

Cyprus The Left

2
icon: NI NI
35

Germany NI

2

Greece NI

Abstain (1)

3

Croatia NI

Abstain (1)

2

Lithuania NI

1

Slovakia NI

2
icon: ID ID
70

Netherlands ID

Against (1)

1

Austria ID

3

Denmark ID

Against (1)

1

Finland ID

2

Czechia ID

Against (2)

2

Estonia ID

Against (1)

1
icon: ECR ECR
64

Germany ECR

Against (1)

1

Romania ECR

Against (1)

1
3

Bulgaria ECR

2

Greece ECR

Against (1)

1

Croatia ECR

Against (1)

1

Lithuania ECR

Against (1)

1

Slovakia ECR

Against (1)

1

Latvia ECR

2

History

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

docs/0/docs/0/url
Old
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C:2021:402I:TOC
New
https://eur-lex.europa.eu/oj/daily-view/L-series/EN/TXT/?uri=OJ:C:2021:402I:TOC
docs/3/docs/0/url
/oeil/spdoc.do?i=57518&j=0&l=en
docs/3/docs/0/url
/oeil/spdoc.do?i=57518&j=0&l=en
procedure/subject/8.70.01
Financing of the budget, own resources
events/0
date
2021-06-25T00:00:00
type
Legislative proposal published
body
EC
docs
summary
events/0
date
2021-06-25T00:00:00
type
Legislative proposal published
body
EC
docs
summary
procedure/subject/8.70.01
Financing of the budget, own resources
docs/3
date
2022-02-18T00:00:00
docs
url: /oeil/spdoc.do?i=57518&j=0&l=en title: SP(2022)38
type
Commission response to text adopted in plenary
body
EC
events/4
date
2021-12-14T00:00:00
type
Results of vote in Parliament
body
EP
docs
url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=57518&l=en title: Results of vote in Parliament
docs/3
date
2021-12-14T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0494_EN.html title: T9-0494/2021
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/4/summary
  • The European Parliament adopted by 516 votes to 116, with 30 abstentions, a legislative resolution on the proposal for a Council regulation European Parliament legislative on the proposal for a Council regulation amending Regulation (EU, Euratom) No 609/2014 in order to enhance predictability for Member States and to clarify procedures for dispute resolution when making available the traditional, VAT and GNI based own resources.
  • The proposal aims to amend Council Regulation (EU, Euratom) No 609/2014 in order to establish the necessary provisions to determine the modalities and procedures for making own resources available. To this end, it sets out a system designed to ensure regular and timely payments to the Union's budget.
  • Parliament approved the Commission's proposal subject to amendments to delete the paragraphs, recitals and references which relate to the proposed changes in the Commission's text concerning the method of calculating interest on late payments and the review procedure in the event of disagreement between a Member State and the Commission as referred to in Article 13(5) or concerning other amounts of traditional own resources due to the Union budget.
docs/3
date
2021-12-14T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0494_EN.html title: T9-0494/2021
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/4
date
2021-12-14T00:00:00
type
Decision by Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0494_EN.html title: T9-0494/2021
forecasts
  • date: 2021-12-14T00:00:00 title: Vote in plenary scheduled
procedure/stage_reached
Old
Awaiting Parliament's vote
New
Awaiting final decision
forecasts/0
date
2021-12-14T00:00:00
title
Vote in plenary scheduled
forecasts/0
date
2021-12-13T00:00:00
title
Indicative plenary sitting date
docs/2
date
2021-12-10T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0347_EN.html title: A9-0347/2021
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/2
date
2021-12-09T00:00:00
type
Vote in committee
body
EP
events/3
date
2021-12-10T00:00:00
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0347_EN.html title: A9-0347/2021
procedure/Other legal basis
Rules of Procedure EP 159
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament's vote
forecasts/0/date
Old
2022-01-17T00:00:00
New
2021-12-13T00:00:00
forecasts
  • date: 2022-01-17T00:00:00 title: Indicative plenary sitting date
docs/1/docs/0/url
https://www.europarl.europa.eu/doceo/document/BUDG-PR-697681_EN.html
committees/0/rapporteur
  • name: FERNANDES José Manuel date: 2021-07-14T00:00:00 group: Group of European People's Party abbr: EPP
  • name: HAYER Valérie date: 2021-07-14T00:00:00 group: Renew Europe group abbr: Renew
docs/1
date
2021-10-20T00:00:00
docs
title: PE697.681
type
Committee draft report
body
EP
docs/0
date
2021-09-22T00:00:00
docs
type
Court of Auditors: opinion, report
body
CofA
docs/0
date
2021-06-25T00:00:00
docs
type
Legislative proposal
body
EC
commission
  • body: EC dg: Budget commissioner: HAHN Johannes
events/0/summary
  • PURPOSE: to enhance predictability for Member States and to clarify procedures for dispute resolution when making available the traditional, VAT and GNI based own resource.
  • PROPOSED ACT: Council Regulation.
  • ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.
  • BACKGROUND: while Council Regulation (EU, Euratom) No 609/2014 has provided a solid and stable anchor for the Union's financing mechanisms, the provisions on making own resources available need to be improved in order to increase predictability for Member States and clarify procedures for dispute resolution disputes.
  • In preparing this proposal, the Commission sent a detailed questionnaire to the Member States, the European Parliament and the European Court of Auditors to assess the content and practical functioning of Council Regulation (EU, Euratom) No 609/2014. The replies to this questionnaire confirmed the overall smooth functioning of the Regulation. However, Member States also made several requests for improvement.
  • CONTENT: the proposal aims to amend Council Regulation (EU, Euratom) No 609/2014 in order to establish the necessary provisions to determine the modalities and procedures for making own resources available. To this end, it sets out a carefully calibrated system to ensure regular and timely payments to the EU budget.
  • In concrete terms, the proposal:
  • - provides for the possibility for the Commission to set up a centralised ‘own resources’ account with a view to increasing efficiency and establishing a common approach to cash management;
  • - gives Member States the possibility, on a case-by-case basis, to make advance payments after having informed the Commission in advance;
  • - modifies the annual balances adjustment and postpones the making available by Member States of the adjustments to year N+2 in order to facilitate the national budgetary procedures;
  • - modifies the rules on interest on late payments: Council Regulation (EU, Euratom) 2016/804 had already capped the increase in interest above the base rate to 16 percentage points. The present proposal extends the capping on the increase of interests to all cases. In addition, it also raises the threshold to waive interest from EUR 500 to EUR 1,000. In addition, a time limit of 10 years is introduced for keeping traditional own resources amounts in the B accounts;
  • - amends the provisions of Regulation (EU, Euratom) No 609/2014 on irrecoverable amounts so as to introduce a general time limit for amounts to be taken out of that separate account to ensure that the cases in this separate account are regularly reviewed;
  • - establishes additional procedural deadlines for the Commission and the Member States to ensure timely follow-up of write-off reports and to support a swift and fully transparent assessment of the Member State’s decision not to make the irrecoverable amount of traditional own resources available, further procedural deadlines for the Commission and Member States should be introduced;
  • - formally establishes a review procedure to improve transparency and clarify Member States' rights of defence in cases of disagreement between Member States and the Commission on the making available of traditional own resources;
  • - introduces provisions to reflect the current practice of the payment under reservation, which opens the possibility to initiate an action for unjust enrichment against the Commission;
  • - includes Germany to the beneficiaries of lump-sum corrections, while the reference to the UK correction is deleted.
  • Budgetary implications
  • The proposal would not change the human and administrative resources required compared to Council Regulation (EU, Euratom) No 609/2014. However, the extension of the cap on the interest rate increase to all cases will lead to a decrease in the interest revenue collected for the EU budget. Its financial impact, based on reference amounts of the past years (as from the entry into force of Council Regulation (EU, Euratom) 2016/804) is estimated at EUR 27.5 million/year.
events/1
date
2021-07-08T00:00:00
type
Committee referral announced in Parliament
body
EP
procedure/dossier_of_the_committee
  • BUDG/9/06422
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision