- MEPs pushing for an ambitious Own Resources reform
- Costs for EU Recovery Package should be covered entirely by the income from new Own Resources
- All budgetary rebates should be abolished
Budget MEPs have adopted their legislative opinion on the Own Resources Decision in order to make the swift implementation of the European Recovery Plan possible.
Members of the Committee on Budgets back the approach whereby a higher Own Resources ceiling provides the fiscal headroom to guarantee borrowing and lending activities that underpin the Next Generation EU recovery plan, in their draft report on the Own Resources Decision, adopted on Tuesday by 33 votes against 5 and with 2 abstentions.
They also call for the introduction of a basket of new Own Resources to finance the costs of repaying the debts incurred under the European Recovery Plan in the medium to long term.
New sources of revenue to be introduced according to a legally binding calendar
In addition to a new national contribution calculated on the basis of non-recycled plastic packaging waste from 2021, MEPs want to see additional Own Resources introduced by the following calendar:
- From 1.1.2021: an Own Resource based on revenue stemming from the EU Emissions Trading System;
- From 1.1.2023: Own Resources based on the revenue collected from the Digital Services taxation and on a Carbon Border Adjustment Mechanism;
- From 1.1.2024: an Own Resource based on a Financial Transaction Tax;
- From 1.1.2026, an Own Resource based on the share of taxable profits attributed to each Member State pursuant to Union rules on the Common Consolidated Corporate Tax Base.
Furthermore, MEPs insist that rebates and other correction mechanisms on the revenue side should be abolished.
José Manuel Fernandes (EPP, PT), co-rapporteur: “We urge the Council to proceed immediately with the approval of the decision on the EU system of own resources. This decision is vital and historical. It will allow the financing of the Recovery Instrument, while ensuring the introduction of the first new own resource in more than three decades. The European Institutions should now commit to a binding agreement for the implementation of other sources of revenue without overburdening the citizens, whilst contributing to the Digital Agenda, to the Green Deal and to a swift and strong recovery.“
Valérie Hayer (RENEW, FR), co-rapporteur: "32 years after the last introduction of a new type of own resource (i.e. the GNI contributions), Members of the European Parliament show they're ambitious for Europe and above the fray: we want to make big tech, big foreign polluters, multinationals practicing tax optimization who benefit from Europe contribute fairly to its recovery."
Debates in the Budgets Committee
Members of the Committee on Budgets discussed future EU financing in Tuesday’s meeting with the MFF/Own Resources negotiating team reporting back from the first trilateral talks with Council on 27 August, and then with Michael Roth, Minister of State for Europe, representing the German Presidency of the Council of the EU. You can watch the two debates by following these links:
Debate on the state of play of negotiations on MFF, Own resources and Recovery plan (1st September 2020, 13:45-14:55)
Exchange of views with Michael Roth, Minister of State for Europe on MFF and Recovery plan (1st September 2020, 17:00-18:00)
The draft report will be submitted to a vote in plenary during the September session.
The Own Resources Decision (ORD) is the legal basis which provides for the main revenue sources of the EU budget. Moreover, the new ORD will constitute the legal basis authorising the borrowing of funds on the financial markets to finance the Next Generation EU Recovery Instrument (NGEU). The Council adopts the decision by unanimity after having consulted the European Parliament. Before entering into force, foreseen for January 2021 together with the new MFF, the ORD has to be ratified by parliaments of all Member States.