- New EU revenue based on ETS, CBAM, and the OECD/G20 global corporate tax agreement
- New own resources agreed in legally binding roadmap from 2020
- Funds urgently needed to repay debts resulting from NGEU recovery fund borrowing
Budget MEPs go ahead with the procedure that will enable the EU to introduce the next generation of EU own resources.
MEPs on Wednesday have adopted their legislative opinion on an amendment to the Own Resources Decision (ORD). This constitutes an important procedural step toward implementing the updated key EU law with the aim of introducing three new sources of revenue: the first one based on revenues from emissions trading (ETS), the second drawing on the resources generated by the proposed EU carbon border adjustment mechanism (CBAM), and the third based on the share of profits from multinationals that will be re-allocated to EU Member States under the recent OECD/G20 agreement on a re-allocation of taxing rights (“Pillar One”).
José Manuel Fernandes (EPP, PT), co-rapporteur: "With this straight forward report, the Committee on Budgets endorses the Commission proposal for a basket of fresh revenue. It is a well-balanced package in line with EU policy priorities. The Council should not lose time in adopting this crucial piece of legislation. We need it to pay back the debt of the Recovery Fund without having to cut the budget in the future, because without new own resources, we will have to cut the budget by 15 billion Euros per year.”
Valérie Hayer (RENEW, FR), co-rapporteur: "It's high time for the Council to move forward. We refuse to choose between cutting in successful programmes or increase taxes at home to repay the debt. We are rather determined to follow the third way we all built together: make big polluters, multinationals not paying their fair share and importers of foreign CO2 pay for the recovery".
Make the EU budget future-proof
In its recent resolution on next year’s EU budget, Parliament has underlined the fact that progress on new own resources is essential both for the repayments of debts incurred under NextGenerationEU (NGEU) and “for the financial robustness and implementation of the current and future multiannual financial frameworks” - the EU’s long-term budgets.
Start preparing the next basket of own resources, respect the roadmap
MEPs have called on the Council to ensure timely introduction of new own resources, in line with the roadmap set out in the Interinstitutional Agreement of December 2020, and on the Commission to accelerate the proposal for the second basket. They urge all institutions to respect the agreed timing and to make necessary progress on the own resources contained in the first basket proposed by the Commission in December 2021.
The text adopted on Wednesday by 22 votes in favour, 1 against and 5 abstentions, once confirmed by plenary in November, will make it possible for the Council of the EU to adopt the amended ORD and start the ratification process in 27 EU countries.
The ORD is the legal basis that provides for the revenue sources of the EU budget, and it is also the legal basis authorising funds to be borrowed 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, the ORD needs to be ratified by all member states.