Council of theEuropean Union
Brussels, 24 September 2020
(OR. en)10046/20
Interinstitutional Files:
2018/0135(CNS)
2020/0135(CNS)RESPR 51
FIN 523
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POLGEN 132
LEGISLATIVE ACTS AND OTHER INSTRUMENTS
Subject:

COUNCIL DECISION on the system of own resources of theEuropean Union and repealing Decision 2014/335/EU, Euratom

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COUNCIL DECISION (EU, Euratom) 2020/…
of …
on the system of own resources of the European Unionand repealing Decision 2014/335/EU, Euratom

THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular the thirdparagraph of Article 311 thereof,
Having regard to the Treaty establishing the European Atomic Energy Community, and in particular
Article 106a thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Parliament1,
Acting in accordance with a special legislative procedure,1

Opinion of … [(OJ …)/(not yet published in the Official Journal)].

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Whereas:(1)

The system of own resources of the Union must ensure adequate resources for the orderly
development of the policies of the Union, subject to the need for strict budgetary
discipline. The development of the system of own resources can and should also
contribute, to the greatest extent possible, to the development of the policies of the Union.

(2)

The Lisbon Treaty introduced changes to the provisions related to the system of own
resources of the Union which enable the abolition of an existing category of own resources
and the establishment of a new category.

(3)

The European Council of 7 and 8 February 2013 called upon the Council to continue
working on the proposal of the Commission for a new own resource based on value addedtax (VAT) to make it as simple and transparent as possible, to strengthen the link with
Union VAT policy and the actual VAT receipts, and to ensure equal treatment of taxpayers
in all Member States.

(4)

In June 2017 the Commission adopted a reflection paper on the future of EU finances. In it,
the Commission proposed a range of options linking own resources more visibly to Union
policies, in particular to the single market and to sustainable growth. According to thepaper, in introducing new own resources, attention should be paid to their transparency,
simplicity and stability, their consistency with Union policy objectives, their impact oncompetitiveness and sustainable growth, and their equitable breakdown among
Member States.

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(5)

The present system for determining the VAT-based own resource has been criticised
repeatedly by the Court of Auditors, the European Parliament and Member States as overly
complex. The European Council of 17 to 21 July 2020 has therefore concluded that it isappropriate to simplify the calculation of that own resource.

(6)

In order to better align the Union’s financing instruments with its policy priorities, to betterreflect the role of the general budget of the Union (‘the Union budget’) in the functioningof the single market, to better support the objectives of Union policies and to reduce
Member States’ contributions based on gross national income (GNI) to the Union’s annual
budget, the European Council of 17 to 21 July 2020 concluded that over the coming years
the Union would work towards reforming the system of own resources and introduce newown resources.

(7)

As a first step, a new category of own resources based on national contributions calculatedon the basis of non-recycled plastic packaging waste should be introduced. In accordancewith the European strategy for plastics, the Union budget can contribute to reduce pollution
from plastic packaging waste. An own resource which is based on national contributions
that are proportional to the quantity of plastic packaging waste that is not recycled in each
Member State will provide an incentive to reduce the consumption of single-use plastics,
foster recycling and boost the circular economy. At the same time, Member States will befree to take the most suitable measures to achieve those goals, in line with the principle ofsubsidiarity. In order to avoid an excessively regressive impact on national contributions,an adjustment mechanism with an annual lump sum reduction should be applied tocontributions of Member States with a GNI per capita in 2017 below the EU average. The
reduction should correspond to 3,8 kilograms multiplied by the population in 2017 of theMember States concerned.

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(8)

The European Council of 17 to 21 July 2020 noted that, as a basis for additional own
resources, the Commission will put forward in the first semester of 2021 proposals on acarbon border adjustment mechanism and on a digital levy with a view to their introduction
at the latest by 1 January 2023. The European Council invited the Commission to put
forward a revised proposal on the EU Emissions Trading System, possibly extending it to
the aviation and maritime sectors. It concluded that the Union will, in the course of themultiannual financial framework for the period 2021-2027 (‘MFF 2021-2027’), work
towards the introduction of other own resources, which may include a Financial
Transaction Tax.

(9)

The European Council of 17 to 21 July 2020 concluded that the own resourcesarrangements should be guided by the overall objectives of simplicity, transparency andequity, including fair burden-sharing. It also concluded that Denmark, the Netherlands,
Austria and Sweden, and, in the context of the support for the recovery and resilience, as
well as Germany, are to benefit from lump sum corrections to their annual GNI-based
contributions for the period 2021-2027.

(10)

Member States should retain, by way of collection costs, 25 % of the amounts oftraditional own resources collected by them.

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(11)

The integration of the European Development Fund into the Union budget should beaccompanied by an increase in the own resources ceilings established in this Decision. A
sufficient margin between the payments and the own resources ceiling is necessary toensure that the Union is able - under any circumstances - to fulfil its financial obligations,even in times of economic downturn.

(12)

A sufficient margin should be preserved under the own resources ceilings for the Union tocover all of its financial obligations and contingent liabilities falling due in any given year.
The total amount of own resources allocated to the Union to cover annual appropriations
for payments should not exceed 1,40 % of the sum of all the Member States’ GNIs. The
total annual amount of appropriations for commitments entered in the Union budget should
not exceed 1,46 % of the sum of all the Member States’ GNIs.

(13)

In order to keep the amount of financial resources put at the disposal of the Union
unchanged, it is appropriate to adjust the own resources ceiling for appropriations forpayments and for appropriations for commitments expressed as a percentage of GNI, in theevent of amendments to Regulation (EU) No 549/2013 of the European Parliament and of
the Council1 which result in significant changes in the level of GNI.

1

Regulation (EU) No 549/2013 of the European Parliament and of the Council of
21 May 2013 on the European system of national and regional accounts in the European
Union (OJ L 174, 26.6.2013, p. 1).

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(14)

The economic impact of the COVID-19 crisis underlines the importance of ensuring that
the Union has sufficient financial capacity in the event of economic shocks. The Union
needs to provide itself with the means to attain its objectives. Financial resources on an
exceptional scale are required in order to address the consequences of the COVID-19 crisis
without increasing the pressure on the finances of the Member States at a moment where
their budgets are already under enormous pressure to finance national economic and social
measures in relation to the crisis. An exceptional response should therefore take place atUnion level. For that reason, it is appropriate to empower the Commission on an
exceptional basis to borrow temporarily up to EUR 750 000 million in 2018 prices oncapital markets on behalf of the Union. Up to EUR 360 000 million in 2018 prices of thefunds borrowed would be used for providing loans and up to EUR 390 000 million in 2018
prices of the funds borrowed would be used for expenditure, both for the sole purpose ofaddressing the consequences of the COVID-19 crisis.

(15)

This exceptional response should address the consequences of the COVID-19 crisis andavoid its re-emergence. Therefore, support should be limited in time and the majority of
the funding should be provided in the immediate aftermath of the crisis, meaning that legal
commitments of a programme financed by these additional resources should be madeby 31 December 2023. The approval of payments under the Recovery and Resilience
Facility will be subject to the satisfactory fulfilment of the relevant milestones and targets
set out in the Recovery and Resilience Plan, which will be assessed in accordance with therelevant procedure set out in the Regulation establishing a Recovery and Resilience
Facility, which reflects the conclusions of the European Council of 17 to 21 July 2020.

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(16)

To bear the liability related to the envisaged borrowing of funds, an extraordinary andtemporary increase in the own resources ceilings is necessary. Therefore, for the sole
purpose of covering all liabilities of the Union resulting from its borrowing to address theconsequences of the COVID-19 crisis, the ceiling for appropriations for payments and theceiling for appropriations for commitments should each be increased by 0,6 percentage
points. The empowerment of the Commission to borrow funds on capital markets on behalfof the Union for the sole and exclusive purpose of financing measures to address theconsequences of the COVID-19 crisis is closely related to the increase in the own
resources ceilings foreseen in this Decision and, ultimately, to the functioning of thesystem of own resources of the Union. Accordingly, that empowerment should be includedin this Decision. The unprecedented nature of this operation and the exceptional amount of
the funds to be borrowed call for certainty about the overall volume of the Union’s liability
and the essential features of its repayment, as well as for the implementation of adiversified borrowing strategy.

(17)

The increase in the own resources ceilings is necessary since the ceilings would otherwise
not be sufficient to ensure the availability of adequate resources that the Union needs tomeet the liabilities resulting from the exceptional and temporary empowerment to borrowfunds. The need to have recourse to this additional allocation will also only be temporary
since the relevant financial obligations and contingent liabilities will decrease over time as
the borrowed funds are repaid and the loans mature. Therefore, the increase should expire
when all funds borrowed have been repaid and all contingent liabilities relating to loans
provided on the basis of those funds have ceased, which should be by 31 December 2058
at the latest.

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(18)

Activities of the Union to address the consequences of the COVID-19 crisis need to besignificant and must take place over a relatively short period. The borrowing of funds
needs to follow this timing. Therefore, new net borrowing activity should stop at the latest
at the end of 2026. After 2026 borrowing operations should be strictly limited torefinancing operations to ensure an efficient debt management. The Commission, when
implementing the operations through a diversified funding strategy, should make the bestuse of the capacity of the markets to absorb the borrowing of such significant amounts offunds with different maturities, including short-term financing for the purpose of cash
management, and ensuring the most advantageous repayment conditions. In addition, theCommission should regularly and comprehensively inform the European Parliament andthe Council about all aspects of its debt management. Once the payment schedules for thepolicies to be funded by the borrowing are known, the Commission will communicate anissuance calendar containing the expected issuance dates and expected volumes for theforthcoming year as well as a plan setting out the expected principal and interest payments
to the European Parliament and the Council. The Commission should update that calendar
regularly.

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(19)

The repayment of funds borrowed for the purpose of providing non-repayable support,
providing repayable support through financial instruments or provisioning for budgetaryguarantees, as well as payment of the interest due, should be funded by the Union budget.
The borrowed funds which are used to provide loans to Member States should be repaid
using the sums received from the beneficiary Member States. The necessary resources
need to be allocated and made available to the Union for it to be able to cover all of its
financial obligations and contingent liabilities resulting from the exceptional andtemporary empowerment to borrow funds in any given year and under any circumstances,in compliance with Article 310(4) and Article 323 of the Treaty on the Functioning of theEuropean Union (TFEU).

(20)

Amounts not used for interest payments as foreseen will be used for early repayments
before the end of the MFF 2021-2027, with a minimum amount, and can be increased
above this level provided that new own resources have been introduced after 2021 inaccordance with the procedure set out in the third paragraph of Article 311 TFEU. All
liabilities incurred by the exceptional and temporary empowerment to borrow funds should
be fully repaid by 31 December 2058. In order to ensure the efficient budgetary
management of the appropriations needed to cover repayments for the funds borrowed, it isappropriate to provide for the possibility of underlying budgetary commitments being
broken down in annual instalments.

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(21)

The schedule of repayments should respect the principle of sound financial management
and cover the entire volume of funds borrowed under the empowerment of theCommission with a view to achieving a steady and predictable reduction of liabilities
during the overall period. For that purpose, the amounts due by the Union in a given year
for the repayment of the principal should not exceed 7,5 % of the maximum amount of
EUR 390 000 million for expenditure.

(22)

Given the features of the exceptional, temporary and limited empowerment of theCommission to borrow funds for the purpose of addressing the consequences of the
COVID-19 crisis, it should be clarified that, as a rule, the Union should not use funds
borrowed on capital markets for the financing of operational expenditure.

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(23)

In order to ensure that the Union is always able to fulfil its legal obligations in respect ofthird parties in a timely manner, specific rules should be provided by this Decisionauthorising the Commission, during the period of the temporary increase in the own
resources ceilings, to call on Member States to provisionally make available the relevant
cash resources if the authorised appropriations entered in the Union budget are notsufficient to cover liabilities arising from the borrowing linked to that temporary increase.
The Commission should, as its last resort, only be able to call cash resources if it cannot
generate the necessary liquidity by activating other measures of active cash management,
including, if necessary, through a recourse to short-term financing on capital markets, inorder to ensure timely compliance with the Union´s obligations towards lenders. It isappropriate to provide that such calls should be announced by the Commission toMember States duly in advance and should be strictly pro rata to the estimated budget
revenue of each Member State, and in any case, limited to their share of the temporarily
increased own resources ceiling, that is 0,6 % of Member States’ GNI. However, if a
Member State fails, in full or in part, to honour a call on time, or if it notifies theCommission that it will not be able to honour a call, the Commission should neverthelessbe authorised on a provisional basis to make additional calls on other Member States on a
pro rata basis. It is appropriate to provide a maximum amount that the Commission may
annually call from a Member State. The Commission is expected to submit the necessary
proposals for the purpose of entering the expenditure covered by the amounts of cash
resources provisionally provided by the Member States in the Union budget in order toensure that those resources are taken into account as early as possible for the purpose ofcrediting own resources to accounts by the Member States, i.e. in accordance with theapplicable legal framework and thus on the basis of the respective GNI keys and without
prejudice to other own resources and other revenues.

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(24)

Under the fourth paragraph of Article 311 TFEU, a Council regulation laying down
implementing measures for the system of own resources of the Union will be adopted.
Those measures should include provisions of a general and technical nature that are
applicable to all categories of own resources. Those measures should include detailed rules
for the calculation and budgeting of the balance, as well as the provisions andarrangements necessary for controlling and supervising the collection of own resources.

(25)This Decision should enter into force only once it has been approved by all Member Statesin accordance with their respective constitutional requirements thus fully respecting
national sovereignty. The European Council of 17 to 21 July 2020 noted the intention ofMember States to proceed with the approval of this Decision as soon as possible.

(26)

For reasons of consistency, continuity and legal certainty, it is necessary to lay down
provisions to ensure a smooth transition from the system introduced by Council
Decision 2014/335 EU, Euratom1 to that provided for in this Decision.

(27)

Decision 2014/335/EU, Euratom should be repealed.

(28)

For the purposes of this Decision, all monetary amounts should be expressed in euro.

1

Council Decision 2014/335/EU, Euratom of 26 May 2014 on the system of own resources of
the European Union (OJ L 168, 7.6.2014, p. 105).

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(29)

Due to the need to urgently enable borrowing with a view to financing measures to address
the consequences of the COVID-19 crisis, this Decision should enter into force on the firstday of the first month following receipt of the last of the notifications of the completion of
the procedures for the adoption of this Decision.

(30)

In order to ensure the transition to the revised system of own resources and to make thisDecision coincide with the financial year, this Decision should apply from 1 January 2021,

HAS ADOPTED THIS DECISION:

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Article 1
Subject matter
This Decision lays down rules on the allocation of own resources to the Union in order to ensure thefinancing of the Union’s annual budget.

Article 2
Categories of own resources and specific methods for their calculation1.

Revenue from the following shall constitute own resources entered in the Union budget:(a)traditional own resources consisting of levies, premiums, additional or compensatory
amounts, additional amounts or factors, Common Customs Tariff duties and otherduties established or to be established by the institutions of the Union in respect oftrade with third countries, customs duties on products under the expired Treaty
establishing the European Coal and Steel Community, as well as contributions andother duties provided for within the framework of the common organisation of themarkets in sugar;(b)the application of a uniform call rate of 0,30 % for all Member States to the total
amount of VAT receipts collected in respect of all taxable supplies divided by theweighted average VAT rate calculated for the relevant calendar year as stipulated in
Council Regulation (EEC, Euratom) No 1553/891. For each Member State the VAT
base to be taken into account for this purpose shall not exceed 50 % of GNI;

1

Council Regulation (EEC, Euratom) No 1553/89 of 29 May 1989 on the definitive uniform
arrangements for the collection of own resources accruing from value added tax (OJ L 155,
7.6.1989, p. 9).

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(c)

the application of a uniform call rate to the weight of plastic packaging waste
generated in each Member State that is not recycled. The uniform call rate shall be
EUR 0,80 per kilogram. An annual lump sum reduction for certain Member States as
defined in the third subparagraph of paragraph 2 shall apply;(d)the application of a uniform call rate, to be determined pursuant to the budgetaryprocedure in the light of the total of all other revenue, to the sum of GNI of all theMember States.

2.

For the purposes of point (c) of paragraph 1 of this Article, ‘plastic’ shall mean a polymer
within the meaning of point (5) of Article 3 of Regulation (EC) No 1907/2006 of theEuropean Parliament and of the Council1, to which additives or other substances may havebeen added; ‘packaging waste’ and ‘recycling’ shall have the meaning assigned to thoseterms in points (2) and (2c) of Article 3 of European Parliament and Council
Directive 94/62/EC2 respectively, and as used in Commission Decision 2005/270/EC3.

1

2
3Regulation (EC) No 1907/2006 of the European Parliament and of the Council of
18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction ofChemicals (REACH), establishing a European Chemicals Agency, amending Directive
1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission
Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission
Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC (OJ L 396, 30.12.2006,
p. 1).
European Parliament and Council Directive 94/62/EC of 20 December 1994 on packaging
and packaging waste (OJ L 365, 31.12.1994, p. 10).
Commission Decision 2005/270/EC of 22 March 2005 establishing the formats relating to
the database system pursuant to Directive 94/62/EC of the European Parliament and of theCouncil on packaging and packaging waste (OJ L 86, 5.4.2005, p. 6).

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The weight of plastic packaging waste that is not recycled shall be calculated as thedifference between the weight of the plastic packaging waste generated in a Member Statein a given year and the weight of the plastic packaging waste recycled in that year that isdetermined pursuant to Directive 94/62/EC.
The following Member States shall be entitled to annual lump sum reductions, expressed incurrent prices, to be applied to their respective contributions under point (c) of paragraph 1
in the amount of EUR 22 million for Bulgaria, EUR 32,1876 million for Czechia, EUR 4
million for Estonia, EUR 33 million for Greece, EUR 142 million for Spain, EUR 13
million for Croatia, EUR 184,0480 million for Italy, EUR 3 million for Cyprus, EUR 6
million for Latvia, EUR 9 million for Lithuania, EUR 30 million for Hungary, EUR 1,4159
million for Malta, EUR 117 million for Poland, EUR 31,3220 million for Portugal,
EUR 60 million for Romania, EUR 6,2797 million for Slovenia and EUR 17 million for
Slovakia.
3.

For the purposes of point (d) of paragraph 1, the uniform call rate shall apply to the GNI of
each Member State.
GNI as referred to in point (d) of paragraph 1 means annual GNI at market prices, as
provided by the Commission in application of Regulation (EU) No 549/2013.

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4.

For the period 2021-2027, the following Member States shall benefit from a gross
reduction in their annual GNI-based contributions under point (d) of paragraph 1 in theamount of EUR 565 million for Austria, EUR 377 million for Denmark, EUR 3 671
million for Germany, EUR 1 921 million for the Netherlands and EUR 1 069 million for
Sweden. Those amounts shall be measured in 2020 prices and adjusted to current prices byapplying the most recent gross domestic product deflator for the Union expressed in euro,
as provided by the Commission, which is available when the draft budget is drawn up.
Those gross reductions shall be financed by all Member States.

5.

If, at the beginning of the financial year, the Union budget has not been adopted, theprevious uniform call rates based on GNI shall continue to apply until the entry into forceof the new rates.

Article 3
Own resources ceilings
1.

The total amount of own resources allocated to the Union to cover annual appropriations
for payments shall not exceed 1,40 % of the sum of all the Member States’ GNIs.

2.

The total annual amount of appropriations for commitments entered in the Union budget
shall not exceed 1,46 % of the sum of all the Member States’ GNIs.

3.

An orderly ratio between appropriations for commitments and appropriations for payments
shall be maintained to guarantee their compatibility and to enable the ceiling set inparagraph 1 to be complied with in subsequent years.

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4.

Where amendments to Regulation (EU) No 549/2013 result in significant changes in thelevel of GNI, the Commission shall recalculate the ceilings set out in paragraphs 1 and 2 as
temporarily increased in accordance with Article 6 on the basis of the following formula:𝑥 % (𝑦 %) ×

𝐺𝑁𝐼𝑡-2 + 𝐺𝑁𝐼𝑡-1 + 𝐺𝑁𝐼𝑡 𝐸𝑆𝐴 𝑐𝑢𝑟𝑟𝑒𝑛𝑡
𝐺𝑁𝐼𝑡-2 + 𝐺𝑁𝐼𝑡-1 + 𝐺𝑁𝐼𝑡 𝐸𝑆𝐴 𝑚𝑜𝑑𝑖𝑓𝑖𝑒𝑑

where:–‘x %’ is the own resources ceiling for appropriations for payments;–‘y %’ is the own resources ceiling for appropriations for commitments;–‘t’ is the latest full year for which the data defined by Regulation (EU) 2019/5161 isavailable,–‘ESA’ is the European system of national and regional accounts in the Union.

Article 4
Use of funds borrowed on capital markets
The Union shall not use funds borrowed on capital markets for the financing of operational
expenditure.

1

Regulation (EU) 2019/516 of the European Parliament and of the Council of 19 March 2019
on the harmonisation of gross national income at market prices and repealing Council
Directive 89/130/EEC, Euratom and Council Regulation (EC, Euratom) No 1287/2003 (GNI
Regulation) (OJ L 91, 29.3.2019, p. 19).

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Article 5
Extraordinary and temporary additional means
to address the consequences of the COVID-19 crisis
1.

For the sole purpose of addressing the consequences of the COVID-19 crisis through theCouncil Regulation establishing a European Union Recovery Instrument and the sectoral
legislation referred to therein:(a)the Commission shall be empowered to borrow funds on capital markets on behalf of
the Union up to EUR 750 000 million in 2018 prices. The borrowing operations shallbe carried out in euro;(b)

up to EUR 360 000 million in 2018 prices of the funds borrowed may be used forproviding loans and, by way of derogation from Article 4, up to EUR 390 000
million in 2018 prices of the funds borrowed may be used for expenditure.

The amount referred to in point (a) of the first subparagraph shall be adjusted on the basisof a fixed deflator of 2 % per year. Each year the Commission shall communicate to theEuropean Parliament and the Council the amount as adjusted.
The Commission shall manage the borrowing referred to in point (a) of the firstsubparagraph so that no new net borrowing takes place after 2026.

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2.

The repayment of the principal of the funds borrowed to be used for expenditure as
referred to in point (b) of the first subparagraph of paragraph 1 of this Article and therelated interest due shall be borne by the Union budget. The budgetary commitments may
be broken down over several years into annual instalments in accordance with
Article 112(2) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of
the Council1.
The repayment of the funds referred to in point (a) of the first subparagraph of paragraph 1of this Article shall be scheduled, in accordance with the principle of sound financial
management, so as to ensure the steady and predictable reduction of liabilities.
Repayments of the principal of the funds shall start before the end of the MFF 2021-2027
period, with a minimum amount, insofar as amounts not used for interest payments due
under the borrowing referred to in paragraph 1 of this Article allow it, with due regard to
the procedure set out in Article 314 TFEU. All liabilities incurred by the exceptional andtemporary empowerment of the Commission to borrow funds referred to in paragraph 1 ofthis Article shall be fully repaid at the latest by 31 December 2058.
The amounts due by the Union in a given year for the repayment of the principal of thefunds referred to in the first subparagraph of this paragraph shall not exceed 7,5 % of the
maximum amount to be used for expenditure referred to in point (b) of the firstsubparagraph of paragraph 1.

1

Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of
18 July 2018 on the financial rules applicable to the general budget of the Union, amending
Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU)No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU)No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom)
No 966/2012 (OJ L 193, 30.7.2018, p.1).

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3.

The Commission shall establish the necessary arrangements for the administration of theborrowing operations. The Commission shall regularly and comprehensively inform theEuropean Parliament and the Council about all aspects of its debt management strategy.
The Commission shall establish an issuance calendar containing the expected issuancedates and volumes for the forthcoming year as well as a plan setting out the expectedprincipal and interest payments, and communicate it to the European Parliament and theCouncil. The Commission shall update that calendar regularly.

Article 6
Extraordinary and temporary increase in the own resources ceilings for the allocationof the resources necessary for addressing the consequences of the COVID-19 crisis
The ceilings set out in Article 3(1) and (2) shall each be temporarily increased by 0,6 percentage
points for the sole purpose of covering all liabilities of the Union resulting from the borrowing
referred to in Article 5 until all such liabilities have ceased to exist, and at the latest
by 31 December 2058.
The increase in the own resources ceilings shall not be used to cover any other liabilities of theUnion.

Article 7
Universality principle
The revenue referred to in Article 2 shall be used without distinction to finance all expenditure
entered in the Union’s annual budget.

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Article 8
Carry-over of surplus
Any surplus of the Union’s revenue over total actual expenditure during a financial year shall be
carried over to the following financial year.

Article 9
Collecting own resources and making them available to the Commission
1.

The own resources referred to in point (a) of Article 2(1) shall be collected by theMember States in accordance with the national provisions imposed by law, regulation oradministrative action. Member States shall, where appropriate, adapt those provisions tomeet the requirements of Union rules.
The Commission shall examine the relevant national provisions communicated to it by
Member States, transmit to Member States the adjustments it deems necessary in order toensure that they comply with Union rules and report, if necessary, to the European
Parliament and the Council.

2.

Member States shall retain, by way of collection costs, 25 % of the amounts referred to inpoint (a) of Article 2(1).

3.

Member States shall make the own resources provided for in Article 2(1) of this Decision
available to the Commission, in accordance with regulations adopted under Article 322(2)TFEU.

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4.

Without prejudice to Article 14(2) of Council Regulation (EU, Euratom) No 609/20141, if
the authorised appropriations entered in the Union budget are not sufficient for the Union
to comply with its obligations resulting from the borrowing referred to in Article 5 of thisDecision and the Commission cannot generate the necessary liquidity by activating othermeasures provided for by the financial arrangements applying to such borrowing in time toensure compliance with the Union´s obligations, including through active cash
management and, if necessary, through a recourse to short-term financing on capital
markets consistent with the conditions and limits set out in point (a) of the firstsubparagraph of Article 5(1) and Article 5(2) of this Decision, the Member States, as theCommission’s last resort, shall make the resources necessary for that purpose available to
the Commission. In such cases, paragraphs 5 to 9 of this Article shall apply by way of
derogation from Article 14(3) and from the first subparagraph of Article 14(4) ofRegulation (EU, Euratom) No 609/2014.

5.

Subject to the second subparagraph of Article 14(4) of Regulation (EU, Euratom)
No 609/2014, the Commission may call on the Member States to provisionally provide thedifference between the overall assets and the cash resource requirements, in proportion(‘pro rata’) to the estimated budget revenue of each of them. The Commission shallannounce such calls to Member States duly in advance. The Commission will establish a
structured dialogue with national debt management offices and treasuries in respect of its
issuance and repayment schedules.

1

Council Regulation (EU, Euratom) No 609/2014 of 26 May 2014 on the methods andprocedure for making available the traditional, VAT and GNI-based own resources and on
the measures to meet cash requirements (OJ L 168, 7.6.2014, p. 39).

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If a Member State fails, in full or in part, to honour a call on time, or if it notifies theCommission that it will not be able to honour a call, in order to cover for the part
corresponding to the Member State concerned, the Commission shall provisionally havethe right to make additional calls on the other Member States. Such calls shall be pro rata
to the estimated budget revenue of each of the other Member States. The Member State
which failed to honour a call shall remain liable to honour it.
6.

The maximum total annual amount of cash resources that may be called from a
Member State under paragraph 5 shall in all circumstances be limited to its GNI-based
relative share in the extraordinary and temporary increase in the own resources ceiling as
referred to in Article 6. For this purpose, the GNI-based relative share shall be calculated
as the share in the total GNI of the Union, as resulting from the respective column in therevenue part of the last adopted annual Union budget.

7.

Any provision of cash resources pursuant to paragraphs 5 and 6 shall be compensatedwithout delay in line with the applicable legal framework for the Union budget.

8.

The expenditure covered by the amounts of cash resources provisionally provided by
Member States in accordance with paragraph 5 shall be entered in the Union budget
without delay in order to ensure that the related revenue is taken into account as early as
possible for the purpose of crediting own resources to accounts by the Member States inaccordance with the relevant provisions of Regulation (EU, Euratom) No 609/2014.

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9.

On an annual basis, the application of paragraph 5 shall not lead to calling cash resourcesin excess of the own resources ceilings referred to in Article 3 as increased in accordancewith Article 6.

Article 10
Implementing measures
The Council shall lay down implementing measures in accordance with the procedure set out in the
fourth paragraph of Article 311 TFEU as regards the following elements of the system of own
resources of the Union:(a)the procedure for calculating and budgeting the annual budgetary balance as set out in
Article 8;(b)

the provisions and arrangements necessary for controlling and supervising the collection of
the own resources referred to in Article 2(1) and any relevant reporting requirements.

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Article 11
Final and transitional provisions
1.

Subject to paragraph 2, Decision 2014/335/EU, Euratom is repealed. Any references toCouncil Decision 70/243/ECSC, EEC, Euratom1, to Council Decision 85/257/EEC,
Euratom2, to Council Decision 88/376/EEC, Euratom3, to Council Decision 94/728/EC,
Euratom4, to Council Decision 2000/597/EC, Euratom5, to Council Decision 2007/436/EC,
Euratom6 or to Decision 2014/335/EU, Euratom shall be construed as references to thisDecision; references to the repealed Decision shall be read in accordance with thecorrelation table in the Annex to this Decision.

1

2
3
4
5
6

Council Decision 70/243/ECSC, EEC, Euratom of 21 April 1970 on the replacement offinancial contributions from Member States by the Communities’ own resources (OJ L 94,
28.4.1970, p. 19).
Council Decision 85/257/EEC, Euratom of 7 May 1985 on the Communities’ system of own
resources (OJ L 128, 14.5.1985, p. 15).
Council Decision 88/376/EEC, Euratom of 24 June 1988 on the system of the Communities’
own resources (OJ L 185, 15.7.1988, p. 24).
Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the European
Communities’ own resources (OJ L 293, 12.11.1994, p. 9).
Council Decision 2000/597/EC, Euratom of 29 September 2000 on the system of theEuropean Communities’ own resources (OJ L 253, 7.10.2000, p. 42).
Council Decision 2007/436/EC, Euratom of 7 June 2007 on the system of the European
Communities’ own resources (OJ L 163, 23.6.2007, p. 17).

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2.

Articles 2, 4 and 5 of Decision 94/728/EC, Euratom, Articles 2, 4 and 5 ofDecision 2000/597/EC, Euratom, Articles 2, 4 and 5 of Decision 2007/436/EC, Euratom
and Articles 2, 4 and 5 of Decision 2014/335/EU, Euratom shall continue to apply to thecalculation and adjustment of revenue accruing from the application of the rate of call to
the VAT base determined in a uniform manner and limited to between 50 % and 55 % of
the GNP or GNI of each Member State, depending on the relevant year, to the calculationof the correction of budgetary imbalances granted to the United Kingdom in the years 1995
to 2020 and to the calculation of the financing of the corrections granted to the United
Kingdom by other Members States.

3.

Member States shall continue to retain, by way of collection costs, 10 % of the amounts
referred to in point (a) of Article 2(1) which should have been made available by theMember States before 28 February 2001 in accordance with the applicable Union rules.

4.

Member States shall continue to retain, by way of collection costs, 25 % of the amounts
referred to in point (a) of Article 2(1) which should have been made available by theMember States between 1 March 2001 and 28 February 2014 in accordance with theapplicable Union rules.

5.

Member States shall continue to retain, by way of collection costs, 20 % of the amounts
referred to in point (a) of Article 2(1) which should have been made available by theMember States between 1 March 2014 and 28 February 2021 in accordance with theapplicable Union rules.

6.

For the purposes of this Decision, all monetary amounts shall be expressed in euro.

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Article 12
Entry into force
The Secretary-General of the Council shall notify the Member States of this Decision.
Member States shall notify the Secretary-General of the Council without delay of the completion of
the procedures for the adoption of this Decision in accordance with their respective constitutional
requirements.
This Decision shall enter into force on the first day of the first month following receipt of the last of
the notifications referred to in the second paragraph.
It shall apply from 1 January 2021.

Article 13
Addressees
This Decision is addressed to the Member States.
Done at Brussels,

For the Council
The President

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ANNEXCORRELATION TABLE
Decision 2014/335/EU, Euratom

This Decision

Article 1

Article 1

Article 2(1)(a)Article 2(1)(a)Article 2(1)(b)

Article 2(1)(b)-

Article 2(1)(c)

Article 2(1)(c)

Article 2(1)(d)Article 2(2)--Article 2(2)Article 2(3)Article 9(2)Article 2(4)Article 2(1)(b)

Article 2(5)Article 2(3), first subparagraph and Article 2(4)Article 2(6)Article 2(5)Article 2(7)Article 2(3), second subparagraph and Article
3(4)Article 3(1)Article 3(1)Article 3(2)Article 3(2) and (3)Article 3(3)-Article 3(4)Article 3(4)Article 4--

Article 4

Article 5--

Article 5-

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Decision 2014/335/EU, Euratom

This Decision

Article 6

Article 7

Article 7

Article 8

Article 8(1)Article 9(1)Article 8(2)Article 9(3)-Article 9(4) to (9)Article 9

Article 10

Article 10(1)Article 11(1)Article 10(2)Article 11(2)Article 10(3)Article 11(3)Article 10(3), second subparagraphArticle 11(4)-Article 11(5)Article 10(4)Article 11(6)Article 11

Article 12

Article 12--

Article 13

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