European Parliament legislative resolution of 16 April 2014 on the draft Council decision on the system of own resources of the European Union (05602/2014 – C7-0036/2014 – 2011/0183(CNS))
(Special legislative procedure – consultation)
The European Parliament,
– having regard to the Council draft (05602/2014),
– having regard to the third paragraph of Article 311 of the Treaty on the Functioning of the European Union and to Article 106a of the Treaty establishing the European Atomic Energy Community, pursuant to which the Council consulted Parliament (C7‑0036/2014),
– having regard to its resolution of 29 March 2007 on the future of the European Union’s own resources(1),
– having regard to its resolution of 8 June 2011 on investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe(2),
– having regard to its resolution of 13 June 2012 on the Multiannual Financial Framework and own resources(3),
– having regard to its resolution of 23 October 2012 in the interest of achieving a positive outcome of the Multiannual Financial Framework approval procedure(4),
– having regard to its resolution of 13 March 2013 on the European Council conclusions of 7-8 February 2013 concerning the Multiannual Financial Framework(5),
– having regard to its resolution of 3 July 2013 on the political agreement on the Multiannual Financial Framework 2014-2020(6),
– having regard to Rule 55 of its Rules of Procedure,
– having regard to the report of the Committee on Budgets (A7-0271/2014),
1. Approves the Council draft as amended;
2. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;
3. Asks the Council to consult Parliament again if it intends to substantially amend its draft;
4. Calls on the High Level Group on Own resources to deliver its first assessment of the own resources system by the end of 2014 as indicated in the joint declaration annexed to this resolution(7); expects that this Group will deliver proposals for overcoming the deficiencies of the current system in order to pave the way for a reform -guided by the overall objectives of simplicity, transparency, equity and democratic accountability- to become operational in the next MFF;
5. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Council draft
Amendment
Amendment 1 Draft decision Recital 8 a (new)
(8a) The European Parliament has continuously called for the Union budget to be financed wholly by own resources, as stipulated in the Treaty, and has regularly highlighted the shortcomings and limits of the existing system of own resources, which is non-transparent, unfair, not subject to parliamentary control, highly complex and totally incomprehensible to European citizens, who ultimately bear the consequences. The European Parliament considers that such a system violates, in essence, the letter and the spirit of the Treaty.
Amendment 2 Draft decision Recital 8 b (new)
(8b) The European Parliament considers that the current system of Union financing, whereby some 74% of revenues stem from GNI-based contributions and 11% from the existing, statistical VAT-based contributions, has only reinforced the logic of “fair return” that has prevailed in every debate in the Council, both on the revenue and the expenditure side of the Union budget and has led to the introduction of complex and opaque rebates and other correction mechanisms, and it contributes to the recurrent problem of shortage of payments in the annual budgetary procedure. The European Parliament considers also that the current system prevents the formation of a sufficient majority in Council to budgetise a sufficient level of payment appropriations in the annual budgets to meet EU legal obligations and political commitments.
Amendment 3 Draft decision Recital 8 c (new)
(8c) The European Parliament has strongly advocated in favour of an in-depth reform of the own resources system that should return to a system of genuine, clear, simple and fair own resources. The European Parliament considered that the Commission legislative proposals on own resources of June 2011 were taking a step in the right direction and were, as such, supported by an overwhelming majority of the European Parliament from the outset; The European Parliament regrets that the Council was unable to make any progress on the reform of the own resources system on the basis of those legislative proposals. The European Parliament regrets that the final European Council political agreement on 8 February 2013 has even introduced new rebates and exceptions.
Amendment 4 Draft decision Recital 8 d (new)
(8d) A High Level Group on own resources is established by common accord of the three Union institutions, as set out in the Joint Declaration on Own Resources, forming part of the political agreement on the MFF 2014-2020. This high level group shall undertake a general review of the Own Resources system guided by the overall objectives of simplicity, transparency, equity and democratic accountability. All aspects of the reform of the own resources system should be examined. A first assessment will be available at the end of 2014.
Amendment 5 Draft decision Recital 8 e (new)
(8e) The outcome of the work of the High Level Group shall be assessed in an inter-institutional conference during 2016, with the participation of national parliaments. On the basis of the results of this work, the Commission will assess if new Own Resources initiatives are appropriate. This assessment will be done in parallel to the MFF 2014-2020 post electoral review/revision, to be launched by the Commission by the end of 2016 at the latest. The European Parliament believes that the work of this High Level Group should pave the way for possible reforms be agreed and become operational for the period covered by the next MFF.
1. According to Article 311 of the TFEU the Union shall provide itself with the means necessary to attain its objectives and carry through its policies; it also stipulates that , without prejudice to other revenue, the budget shall be financed wholly from own resources. Article 311 al. 3 indicates that the Council, acting in accordance with a special legislative procedure, shall unanimously and after consulting the European Parliament adopt a decision on the system of own resources and that, in that context, the Council may establish new categories of own resources or abolish an existing category.
2. On this basis, the Commission presented in June 2011 a set of proposals to reform the Own Resources system of the Union. At its meeting of 7/8 February 2013, the European Council agreed that Own Resources arrangements should be guided by the overall objectives of simplicity, transparency and equity. In addition, the European Council called on the Council to continue working on the proposal of the Commission for a new own resource based on value added tax (VAT). It also invited the Member States participating in the enhanced cooperation in the area of financial transaction tax (FTT) to examine if it could become the base for a new own resource for the EU budget.
3. The question of own resources requires further work. To this end, a high-level Group will be convened, composed of members appointed by the three institutions. It will take into account all existing or forthcoming input which may be brought by the three European institutions and by National Parliaments. It should draw on appropriate expertise, including from national budgetary and fiscal authorities as well as independent experts.
4. The Group will undertake a general review of the Own Resources system guided by the overall objectives of simplicity, transparency, equity and democratic accountability. A first assessment will be available at the end of 2014. Progress of the work will be assessed at political level by regular meetings, at least once every six months.
5. National Parliaments will be invited to an inter-institutional conference during 2016 to assess the outcome of this work.
6. On the basis of the results of this work, the Commission will assess if new Own Resource initiatives are appropriate. This assessment will be done in parallel to the review referred to in Article 1a of the MFF Regulation with a view to possible reforms to be considered for the period covered by the next multiannual financial framework.