Financing of the EU budget: The own resources system

20-02-2013

The system of "own resources" ensures the financing of the EU's policies. Total revenues amounted to €130 billion in 2011. Successive reforms have determined its current configuration, which relies on three key streams of revenue: traditional own resources (mainly customs duties); a resource based on value added tax (VAT); and a resource related to gross national income (GNI). At present, the system provides sufficient resources to cover planned expenditure, but is often criticised for its complexity and opacity. Modification of the own resources system requires unanimity in the Council and ratification by each Member State (MS). For the Own Resources Decision, the European Parliament (EP) is only consulted.

The system of "own resources" ensures the financing of the EU's policies. Total revenues amounted to €130 billion in 2011. Successive reforms have determined its current configuration, which relies on three key streams of revenue: traditional own resources (mainly customs duties); a resource based on value added tax (VAT); and a resource related to gross national income (GNI). At present, the system provides sufficient resources to cover planned expenditure, but is often criticised for its complexity and opacity. Modification of the own resources system requires unanimity in the Council and ratification by each Member State (MS). For the Own Resources Decision, the European Parliament (EP) is only consulted.