2. EUownresources*
A5-0052/1999
Proposal for a Council Decision on the systemof the European Union’s own resources
(COM(1999)333vdashC5-0092/1999vdash1999/0139(CNS))
The proposal was amended as follows:
TEXT PROPOSED
BY THE COMMISSION (1)AMENDMENTS
BY PARLIAMENT
(Amendment 2)
Recital2
(2)Whereas according to the said Decision the maximum
ceiling of own resources for 1999 was set equal to 1,27 % ofthe European Union GNP at market prices and an overall ceil-ing of 1,335 % of the European Union GNP was set for com-mitments appropriations;(2)Whereas according to the said Decision the maximum
ceiling of own resources for 1999 was set equal to 1,27 % ofthe European Union GNP at market prices and an overall ceil-ing of 1,335 % of the European Union GNP was set for com-mitment appropriations ;whereastheseratesdetermine the
maximum proportion of Community GNP that is to beavailableforfinancingthebudget;whereastheyconstitutethe basis for cooperation based on partnership betweenthe two armsof the budgetary authority that hashelpedshapeviablefinancialframeworkagreementsbetweentheinstitutionsandensureprudentfinancialmanagement,andaretoremainastheystand;
(Amendment 1)
Recital2a (new)
(2a) Whereason11March1999theEuropeanParliament
adopted a resolution on the need to modify and reformthesystemoftheEuropeanUnion’sownresources(
1);
(1) OJC175,21.6.1999,p.238.
(Amendment 3)
Recital 2b (new)
(2b) Whereas the continuous development and forth-
coming enlargement of the European Union make a
dynamicreformoftherevenuesystemnecessary;whereas
suchareformmust be designed to increasethe Commu-nity’sfinancialautonomyandestablishnewformsofownresources without increasing the overall burden of taxesand charges on the European taxpayer and with dueregard for the economic performance of the MemberStates; whereas the planned changes to the systemofown resources must come into effect immediately andthepreparationoffurtherreformsmustbespeededup;
(1)OJ C 274 E, 28.9.1999, p. 39.C 189/72 EN 7.7.2000 Official Journal of the European Communities
Wednesday17November1999
(Amendment 4)
Recital3a (new)
(3a) Whereas the financial perspective included in
Annex I to the interinstitutional agreement of 6 May1999(
1) sets the own resources ceiling at 1,27% of the
GNPoftheEuropeanUnion;
(1) OJC172,18.6.1999,p.1.
(Amendment 5)
Recital5
(5)Whereas the system should be equitable, transparent, cost-
effective and simple;(5)Whereas the system should be equitable, transparent, cost-
effective,simpleandreadilyunderstandablebythepublic;
(Amendment 6)
Recital5a (new)
(5a) Whereas,toensurethisforthefuture,theEUmust
move steadily away from dependence on transfers fromMember States; whereas, in the long term, the ownresourcessystemmustbemodifiedwithaviewtoachiev-ingfinancialautonomy;
(Amendment 8)
Recital 5b (new)
(5b) Whereasabalancedbudgetisnotexclusivelyamat-
teroftherevenueside;
(Amendment 31)
Recital6
(6)Whereas the system should be based on criteria which best
express each Member State’s ability to contribute ;(6)Whereas the system should be based on criteria which
correspondto each Member State’s economicperformances
for which GNP is the relevant indicator; whereas, infuture, the use of compensatory mechanisms on the rev-enue side should be avoided as a matter of principle;whereasimbalancesmustbecorrectedbyareformoftheexpenditurestructure;
(Amendment 10)
Recital7
(7)Whereas it is appropriate that the best quality data are
used for the purposes of the EU budget and its own resources;whereas the application, upon the entry into force of a newdecision repealing Council Decision 94/728/EC, Euratom, ofthe new system of integrated economic accounts in accordancewith Council Regulation 2223/96 (ESA 95)will improve thequality of measurement of national accounts data; whereas the(7)Whereas it is appropriate that the best quality data are
used for the purposes of the EU budget and its own resources;whereas the application, upon the entry into force of a newdecision repealing Council Decision 94/728/EC, Euratom, ofthe new system of integrated economic accounts in accordancewith Council Regulation 2223/96 (ESA 95)will improve thequality of measurement of national accounts data;7.7.2000 EN C 189/73 Official Journal of the European Communities
Wednesday17November1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
use of the new system might result in a change in the maximum
amount of resources made available to the EUcorresponding to theGNPceilingsexpressedasapercentofGNP;whereasitisappropriate
to adapt theceilingexpressed as apercent ofGNPso as to maintain
unchangedtheamountoffinancialresourcesputatthedisposaloftheUnion; whereas reliable estimates of EU GNP according to both theESA95andtheESAsecondeditionwillbecomeavailablewithsomedelay; whereas it is appropriate to establish a formula for the deter-mination of the new ceilings to be used in connection with the GNPcalculated according to ESA 95, to be applied at the time of entryinto force of thecurrent Decision;
(Amendment 11)
Recital 11, 1st indent
%dash the maximum rate of call on the VAT resource will be
reduced to 0,75 % in 2002 and 2003 and to 0,50 % from
2004 onwards ,%dash the maximum rate of call on the VAT resource will be
reduced to 0,75 % in 2001and2002, to 0,50 %in2003
and2004andto0,25%from2005onwards ,
(Amendment 13)
Recital13
(13)Whereas the budgetary imbalances should be corrected
in such a way as not to affect the own resources available forEuropean Union policies;(13)Whereas the budgetary imbalances should be corrected
in such a way as not to affect the own resources available forEuropean Union policies ;whereasthisprinciplemustapply
withoutrestrictiontoallformsofownresourcesandalsocoverrefundstoMemberStates;
(Amendment 32)
Recital15a (new)
(15a) Whereas the European Union’s systemof own
resources ought in future no longer include derogations;whereasexistingcorrectionmechanismsshouldthereforebegraduallydismantled;
(Amendment 14)
Recital16
(16)Whereas the monetary reserve, hereinafter referred to as
‘the EAGGF monetary reserve’, the reserve for the financing of
the Loan Guarantee Fund and the reserve for emergency aid in
non-member countries are covered by specific provisions;(16)Whereas the monetary reserve, hereinafter referred to as
‘the EAGGF monetary reserve’, the reserve for the financing of
the Loan Guarantee Fund and the reserve for emergency aid in
non-member countries are covered by specific provisions ;
whereas, in addition, it would make sense to introduceanEAGGFreserveformarketuncertainties;
(Amendment 15)
Recital17
(17)Whereas the European Council of 24 and 25 March
1999 invited the Commission to submit, before 1 January2006, a report reviewing the operation of the own resourcessystem and, in particular, the effects of enlargement on the(17)Whereas the European Council of 24 and 25 March
1999 invited the Commission to submit, before 1 January2006, a report reviewing the operation of the own resourcessystem and, in particular, the effects of enlargement on theC 189/74 EN 7.7.2000 Official Journal of the European Communities
Wednesday17November1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
financing of the budget; whereas the report should also review
the correction of the budgetary imbalances granted to theUnited Kingdom as well as the granting to Austria, Germany,
the Netherlands and Sweden of the reduction in the financing
of the budgetary imbalances in favour of the United Kingdom;whereas the report should also address the feasibility of creat-ing new autonomous own resources as well as arrangementsfor the possible introduction of a fixed uniform rate applicableto the VAT assessment bases;financing of the budget; whereas the report should also review
the correction of the budgetary imbalances granted to theUnited Kingdom as well as the granting to Austria, Germany,
the Netherlands and Sweden of the reduction in the financing
of the budgetary imbalances in favour of the United Kingdom;whereas the report should also address the feasibility of creat-ing new autonomous own resources as well as arrangementsfor the possible introduction of a fixed uniform rate applicableto the VAT assessment bases; whereastheCommissionwill
submitthatreportbefore1January2004;whereas,onthebasis of that report, the Commission will submit, before1 January 2005, a proposal for a Council decision whichwill replace this Decision on 1 January 2007; whereasthat decision is to include provisions concerning thereplacement of the VAT resource by new, autonomousown resources; whereas those new resources should bedirectlyconnectedwithordinarycitizensandnotincreasethe tax burden they bear; whereas, furthermore, provi-sions should be included for the gradual phasing-out of
thecompensatorymechanismestablishedinfavourofthe
United Kingdom; whereas, it should enter into forcesimultaneously with the beginning of the new financialperspective from2007with aview to im proving consis-tencybetweentherevenueandexpendituresidesofbud-getarypolicy;
(Amendment 16)
Recital19
(19)Whereas the European Council provided that this Decision
should take effect on 1 January 2002;(19)Whereas this Decision should take effect on 1 January
2001;
(Amendment 17)
Article 2(3),2nd subparagraph (new)
In so far as the provision of services by the customs
authorities of the Member States is paid for out of theUnion budget, the Commission shall submit, not laterthan31January2003,areportonitsowninitiativesandthosebytheMemberStatestomaketheactivitiesofthecustomsauthoritiesintheUnionmorecoherentandinte-gratedandanalyseprogressrecordedintheareaofcom-bating fraud against the Union budget, as well as theresultsobtainedintheareaoftherecoveryofsumsfrau-dulentlyobtainedfromthebudget.
(Amendments 18 and 34)
Article 2(4)
4. The uniform rate referred to in paragraph 1(c)shall cor-
respond to the rate resulting from the difference between:4. The uniform rate referred to in paragraph 1(c)shall cor-
respond to the rate resulting from the difference between:
(a)the maximum rate of call of the VAT resource which is
fixed at(a)the maximum rate of call of the VAT resource which is
fixed at
%dash 0,75 % in 2002 and 2003 %dash 0,75 % in2001and2002
%dash 0,50 %from 2004 onwards, and %dash 0,50 %in2003and2004
vdash 0,25%for2005and2006,and7.7.2000 EN C 189/75 Official Journal of the European Communities
Wednesday17November1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
(b)a rate (‘frozen rate’) equivalent to the ratio between the
amount of the compensation referred to in Article 4 andthe sum of the VAT assessment bases (established in accor-
dance with Article 2(1)(c)) of all Member States, taking
into account the fact that the United Kingdom is excludedfrom the financing of its correction and that the share ofAustria, Germany, the Netherlands and Sweden in thefinancing of the UK correction is reduced to one fourthof its normal value.(b)a rate (‘frozen rate’) equivalent to the ratio between the
amount of the compensation referred to in Article 4 andthe sum of the VAT assessment bases (established in accor-
dance with Article 2(1)(c)) of all Member States, taking
into accountuntilfurthernotice the fact that the United
Kingdom is excluded from the financing of its correctionand that the share of Austria, Germany, the Netherlandsand Sweden in the financing of the UK correction isreduced to one fourth of its normal value.
(Amendment 19)
Article 2(6)
6. If, at the beginning of the financial year, the budget has
not been adopted, the previous uniform VAT rate and rateapplicable to Member States’ GNPs, without prejudice to theprovisions adopted in accordance with Article 8(2)as regardsthe EAGGF monetary reserve, the reserve for financing theLoan Guarantee Fund and the reserve for emergency aid inthird countries, shall remain applicable until the entry intoforce of the new rates.6. If, at the beginning of the financial year, the budget has
not been adopted, the previous uniform VAT rate and rateapplicable to Member States’ GNPs, without prejudice to theprovisions adopted in accordance with Article 8(2)as regardsthe EAGGF monetary reserve, theEAGGFreserveformarket
uncertainties, the reserve for financing the Loan Guarantee
Fund and the reserve for emergency aid in third countries,shall remain applicable until the entry into force of the newrates.
(Amendment 20)
Article 2(7)
7. For the purposes of applying this Decision, the Council,
ruling unanimously on a Commission proposal and after con-sultation with the European Parliament, will adopt by means ofa Regulation the definition of GNP which must be incorporatedin Regulation 2223/96/EC as well as a new GNP Directivewhich will replace Directive 89/0130/EC, Euratom.7. For the purposes of applying this Decision, the Council,
ruling unanimously on a Commission proposal and after con-sultation with the European Parliament, will adopt by means ofa regulation the definition of GNP which must be incorporatedin Regulation 2223/96/EC as well as a new GNP Directivewhich will replace Directive 89/0130/EC, Euratom. Pending
publicationofthisregulationanddirective,therulescur-rentlyinforceshallapply.
(Amendment 21)
Article 3
1. The total amount of own resources assigned to the Union
to cover payments appropriations may not exceed a certainpercentage of the total GNPs of the Member States. Thispercen-
tage,expressedintwodecimalplaces,willbedeterminedbytheCom-
mission in December 2001on thebasis of thefollowing formula:1. The total amount of own resources assigned to the Union
to coverappropriations for payments may not exceed
1,27% of theGNPof theEuropeanUnion .
Maximumownresources=1,27%*((1998+1999+2000GNP
ESA 2nd edition) / (1998+ 1999 + 2000 GNP ESA 1995))
2. Thecommitment appropriations entered in the general bud-
get of the Union must follow an orderly progression resultingin a total amount, which does not exceed acertain percentage of
thetotal GNPs of theMember States .This percentage, expressed in
twodecimal places,willbedeterminedbytheCommission inDecem-ber 2001 on thebasis of thefollowing formula:2. Theappropriations for commitments entered in the
general budget of the Union must follow an orderly progres-sion resulting in a total amount, which does not exceed1,335% of theGNP of theEuropeanUnion .
Maximum commitment resources = 1,335% * ((1998 + 1999 +
2000 GNP ESA 2nd edition) / (1998 + 1999 + 2000 GNPESA 1995))C 189/76 EN 7.7.2000 Official Journal of the European Communities
Wednesday17November1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
An orderly ratio between commitmentappropriations andpayment
appropriations shall be maintained to guarantee their compatibil-
ity and to enable the ceilings mentioned in paragraph 1 to be
respected in subsequent years.An orderly ratio between appropriations for commitments
andappropriations for payments shall be maintained to
guarantee their compatibility and to enable the ceilings men-
tioned in paragraph 1 to be respected in subsequent years.
3. The Commission shall communicate to the budgetary authority
the newceilings for own resources before 31 December 2001.
4. ThesameproceduredescribedinthisArticle,paragraphs 1and
2, will be followed in the case of modifications of the European sys-temofintegratedeconomic accounts (ESA)whichresultinsignificantchanges in thelevelof GNP.
(Amendment 23)
Article 4, 4th paragraph (new)
TheCommissionshallnotifytheEuropeanParliamentand
theCourtofAuditorsofeachannualadjustment.
(Amendment 24)
Article 5(3),2nd subparagraph (new)
ACouncilimplementingregulationadoptedonaproposal
from the Commission and after consulting the EuropeanParliamentandtheCourtofAuditorsshallspecifythecri-teria on which the calculation of the correction isrequiredtobebased.
(Amendment 25)
Article 6
The revenue needed to cover in full or in part the EAGGF
monetary reserve, the reserve for the financing of the LoanGuarantee Fund and the reserve for emergency aid in thirdcountries, entered in the budget shall not be called up fromthe Member States until the reserves are implemented. Provi-sions for the operation of those reserves shall be adopted as
necessary in accordance with Article 8(2).The revenue needed to cover in full or in part the EAGGF
monetary reserve, theEAGGFreserveformarketuncertain-
ties, the reserve for the financing of the Loan Guarantee Fund
and the reserve for emergency aid in third countries, entered inthe budget shall not be called up from the Member States untilthe reserves are implemented. Provisions for the operation of
those reserves shall be adopted as necessary in accordance
with Article 8(2).
(Amendment 26)
Article 7, 2nd paragraph
Any surpluses generated by a transfer from EAGGF Guarantee
Section chapters, or surplus from the Guarantee Fund arisingfrom external measures, transferred to the revenue account inthe budget, shall be regarded as constituting own resources.Any surpluses generated by a transfer from EAGGF Guarantee
Section chapters and the reserve for market uncertainties ,
or surplusesfrom the Guarantee Fund arising from external
measures, transferred to the revenue account in the budget,shall be regarded as constituting own resources.7.7.2000 EN C 189/77 Official Journal of the European Communities
Wednesday17November1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
(Amendment 27)
Article 8(2)
2. Without prejudice to the auditing of the accounts and to
checks that they are lawful and regular as laid down inArticle 248 of the Treaty establishing the European Commun-ity and Article 160c of the Euratom Treaty, such auditing andchecks being mainly concerned with the reliability and effective-
ness of national systems and procedures for determining thebase for own resources accruing from VAT and GNP and with-out prejudice to the inspection arrangements made pursuant to
Article 279(c)of the EC Treaty and Article 183(c)of the Eura-
tom Treaty, the Council shall, acting unanimously on a propo-sal from the Commission and after consulting the EuropeanParliament, adopt the provisions necessary to apply this Deci-sion and to make possible the inspection of the collection, themaking available to the Commission and payment of the rev-enue referred to in Articles 2 and 5.2. Without prejudice to the auditing of the accounts and to
checks that they are lawful and regular as laid down inArticle 248 of the Treaty establishing the European Commun-ity and Article 160c of the Euratom Treaty, such auditing andchecks being concerned in particular with the reliability and
effectiveness of national systems and procedures for determin-ing the base for own resources accruing from VAT and GNP,and without prejudice to the inspection arrangements made
pursuant to Article 279(c)of the EC Treaty and Article 183(c)
of the Euratom Treaty, the Council shall, acting unanimouslyon a proposal from the Commission and after consulting theEuropean Parliament, adopt the provisions necessary to applythis Decision and to make possible the inspection of the collec-tion, the making available to the Commission and payment ofthe revenue referred to in Articles 2 and 5.
(Amendment 28)
Article 9
The Commission shall submit, before 1 January 2006 , a report
reviewing the operation of the own resources system and, inparticular, the effects of enlargement on the financing of thebudget. The report shall also review the correction of budget-ary imbalances granted to the United Kingdom as well as the
granting to Austria, Germany, the Netherlands and Sweden of thereduction referred to in Article 5(1). The report shall also address
the possibility of modifying the structure of the own resourcesby creating new autonomous own resources as well as arrange-
ments for the possible introduction of a fixed uniform rate applicable
to theVAT base.1. The Commission shall submit, before 1 January 2004 ,
a report reviewing the operation of the own resources systemand, in particular, the effects of enlargement on the financingof the budget. The report shall also review the correction ofbudgetary imbalances granted to the United Kingdom with a
viewtoitsgradualphasing-out . The report shall also address
the possibility of modifying the structure of the own resourcesby creating new autonomous own resources which are
directlyconnectedwith ordinarycitizens andwhichwill
notincreasethetaxburdentheybear,aswellastherepla-
cement of revenue in accordance with Article 2(1)(c) bysuchnewautonomousresources.
2. Before1January2005,theCommissionshallsubmit
aproposalforadecisionontheEuropeanUnion’ssystemof own resources which will replace this Decision by1 January 2007. The proposal shall include provisions
relating to the replacement of the VATresource by new
autonomous own resources which meet the criteria laiddown in paragraph 1 and provisions relating to the gra-dualphasing-out ofthe correctivemechanismestablishedinfavouroftheUnitedKingdom.
(Amendment 29)
Article 10 (1),3rd subparagraph
This Decision shall enter into force on the first day of the
month following receipt of the last of the notifications referredto in the second subparagraph. It shall take effect on 1 January2002exceptforArticle2(3)and(4),whichshalltakeeffecton1Jan-uary 2001 .This Decision shall enter into force on the first day of the
month following receipt of the last of the notifications referredto in the second subparagraph. It shall take effect on 1 January2001 .C 189/78 EN 7.7.2000 Official Journal of the European Communities
Wednesday17November1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
(Amendment 30)
Article 10(2)(a)
2 (a)Subject to (b) , Decision 94/0728/EC, Euratom shall be
repealed as of 1 January 2002 . Any references to the
Council Decision of 21 April 1970 on the replacement of
financial contributions from Member States by the Com-munities’ own resources, to Council Decision 85/0257/EEC, Euratom of 7 May 1985 on the Communities’ systemof own resources, to Decision 88/0376/EEC, Euratom, orto Decision 94/0728/EC, Euratom shall be construed asreferences to this Decision.2 (a)Subject to (b) , Decision 94/0728/EC, Euratom shall be
repealed as of 1 January 2001 . Any references to the
Council Decision of 21 April 1970 on the replacement of
financial contributions from Member States by the Com-munities’ own resources, to Council Decision 85/0257/EEC, Euratom of 7 May 1985 on the Communities’ systemof own resources, to Decision 88/0376/EEC, Euratom orto Decision 94/0728/EC, Euratom shall be construed asreferences to this Decision.
EuropeanParliamentlegislativeresolutionontheproposalforaCouncilDecisiononthesystem
oftheEuropeanUnion’sownresources(COM(1999)333vdashC5-0092/1999vdash1999/0139(CNS))
(Consultation procedure)
The European Parliament,
%dash having regard to the Commission proposal to the Council (COM(1999)333) (1),
%dash having been consulted by the Council pursuant to Article 269 of the EC Treaty and Article 173 of the
Euratom Treaty (C5-0092/1999),
%dash having regard to Rule 67 of its Rules of Procedure,%dash having regard to the report of the Committee on Budgets and the opinion of the Committee on
Budgetary Control (A5-0052/1999),
1. Approves the Commission proposal as amended;
2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2)of the EC
Treaty and Article 119, second paragraph, of the Euratom Treaty;
3. If the Council intends to depart from the text approved by Parliament, calls on the Council to notify
Parliament;
4. Calls for the conciliation procedure to be initiated should the Council intend to depart from the text
approved by Parliament;
5. Asks to be consulted again if the Council intends to amend the Commission proposal substantially;
6. Instructs its President to forward its position to the Council and Commission.
(1)OJ C 274 E, 28.9.1999, p. 39.7.7.2000 EN C 189/79 Official Journal of the European Communities
Wednesday17November1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT