6.11.93 OfficialJournaloftheEuropeanCommunities NoC300/17
II
(PreparatoryActs)
COMMISSION
ProposalforaCouncilDecisiononthesystemoftheCommunities'ownresources
(93/C300/18)
COM(93)438final
(SubmittedbytheCommissionon11October1993)
ORIGINAL PROPOSAL AMENDED PROPOSAL
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticles199and
201thereof,HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticles199and
201thereof,
HavingregardtotheTreatyestablishingtheEuropean
AtomicEnergyCommunity,andinparticularArticles
171(1)and173thereof,HavingregardtotheTreatyestablishingtheEuropean
AtomicEnergyCommunity,andinparticularArticles
171(1)and173thereof,
HavingregardtotheproposalfromtheCommission(*),HavingregardtotheproposalfromtheCommission('),
HavingregardtotheopinionoftheEuropean
Parliament(2),
HavingregardtotheopinionoftheEconomicand
SocialCommittee(3),HavingregardtotheopinionoftheEuropean
Parliament(2),
HavingregardtotheopinionoftheEconomicand
SocialCommittee(3),
[WhereasCouncilDecision85/257/EEC,Euratoinof
7May1985ontheCommunities'systemofown
resources(1),aslastamendedbytheSingleEuropean
Act,raisedto1,4%thelimitforeachMemberStateon
therateappliedtotheuniformvalue-addedtax(VAT)
basepreviouslysetat1%bytheCouncilDecisionof21
April1970onthereplacementoffinancialcontributions
fromMemberStatesbytheCommunities'own
resources(5),hereinafterreferredtoas'theDecisionof
21April1970';]WhereasCouncilDecision88/376/EEC,Euratomof24
June1988onthesystemoftheCommunities'own
resources(4)expandedandamendedthecompositionof
ownresourcesbycappingtheVATresourcesbaseat
55%ofgrossnationalproductfortheyearatmarket
prices(hereinafter'GNP'),withthemaximumcall-in
ratebeingmaintainedat1,4%,andbyintroducingan
additionalresource,basedonthetotalGNPofMember
States,designedtoguaranteebudgetarybalancebetween
revenueandexpenditure ;
(»)OJNoC102,16.4.1988,p.8.
(2)Opiniondeliveredon15June1988(notyetpublishedinthe
OfficialJournal).
OOJNoC175,4.7.1988.
(4)OJNoL185,15.7.1988,p.24.(')OJNoC102,16.4.1988,p.8.
(2)Opiniondeliveredon15June1988(notyetpublishedinthe
OfficialJournal).
OOJNoC175,4.7.1988.
(4)OJNoL128,14.5.1985,p.15.
(5)OJNoL94,28.4.1970,p.19.

NoC300/18 OfficialJournaloftheEuropeanCommunities 6.11.93
ORIGINAL PROPOSAL AMENDED PROPOSAL
Whereasthissystemhasproducedasounderbasisfor
financingtheCommunity;whereas,however,the
structureofthesystemshouldmakemoreallowancefor
eachMemberState'sabilitytocontributebycorrecting
thedegressiveaspectsofthesystemfortheleastpros­
perousMemberStates;[Whereastheresourcesavailablewithinthelimitof
1,4%arenolongersufficienttocovertheestimatesof
Communityexpenditure;]
[WhereastheSingleEuropeanActopensupnew,possi­
bilitiestotheCommunity;whereasArticle8aofthe
TreatyestablishingtheEuropeanEconomicCommunity
providesforthecompletionoftheinternalmarketby31
December1992;]
WhereastheCommunitymusthaveadequateresources
tofinanceitspolicies;whereasitsrevenuemustmatch
theexpenditurejudgednecessaryforthosepolicies,for
whichtheprioritiesweresetinthefinancialperspective
containedintheinterinstitutional Agreementbetween
theEuropeanParliament,theCouncilandthe
Commission,whichwilltakeeffecton1January1995;[WhereastheCommunitymustpossessstableand
guaranteedrevenueenablingittostabilizethepresent
situationandoperatethecommonpolicies;whereasthis
revenuemustbebasedontheexpendituredeemed
necessarytothisendwhichwasdeterminedinthe
financialestimatesintheinterinstitutional Agreement
betweentheEuropeanParliament,theCouncilandthe
Commission,whichwilltakeeffecton1July1988;]
WhereastheEuropeanCouncilmeetinginEdinburghon
11and12December1992reachedcertainconclusions;WhereastheEuropeanCouncilmeeting[inBrusselson
11,12and13February1988]reachedcertain
conclusions;
Whereas,inaccordancewiththeseconclusions,the
Communitywill,by1999,beassignedamaximum
amountofownresourcescorresponding to1,27%of
thetotaloftheMemberStates'GNP;Whereas,inaccordancewiththeseconclusions,the
Communitywill,by[1992],beassignedamaximum
amountofownresourcescorresponding to[1,2%]of
thetotaloftheMemberStates'grossnationalproduct
fortheyearatmarketprices,hereinafterreferredtoas
'GNP';
Whereasobservanceofthisceilingrequiresthatthetotal
amountofownresourcesattheCommunity'sdisposal
fortheperiod1995to1999doesnotinanyoneyear
exceedaspecifiedpercentageofthesumofthe
Community'sGNPfortheyearinquestion;whereas
thatpercentagehasbeensetbyreferencetotheexpen­
ditureceilingsagreedbytheCommunityinstitutions;Whereasobservanceofthisceilingrequiresthatthetotal
amountofownresourcesattheCommunity'sdisposal
fortheperiod[1988to1992]doesnotinanyoneyear
exceedaspecifiedpercentageofthesumofthe
Community'sGNPfortheyearinquestion;whereas
thatpercentage[shallcorrespondtoapplicationofthe
guidelinesestablishedforgrowthinCommunityexpen­
ditureaslaiddownintheEuropeanCouncilconclusions
concerning budgetarydisciplineandbudget
management ,andasafetymarginof0,03%of
CommunityGNPaimedatcopingwithunforeseen
expenditure;]
Whereasaglobalceilingof[1,30%]oftheMember
States'GNPissetforcommitmentappropriations ;
whereasanorderlyprogressionofcommitmentappropri­
ationsandpaymentappropriations mustbeensured;Whereasanoverallceilingof1,335%oftheMember
States'GNPissetforcommitmentappropriations ;
whereasanorderlyprogressionofcommitmentappropri­
ationsandpaymentappropriations mustbeensured;
Whereastheseceilingsshouldremainapplicableuntilthis
Decisionisamended;Whereastheseceilingsshouldremainapplicableuntilthis
Decisionisamended;

6.11.93 OfficialJournaloftheEuropeanCommunities NoC300/19
ORIGINALPROPOSAL AMENDED PROPOSAL
Whereas,withaviewtomatchingtheresourcespaidby
eachMemberStatemorecloselywithitsabilityto
contribute,[thecompositionofCommunityown
resourcesshouldbeamendedandenlarged;whereasitis
necessaryforthispurpose:Whereas,withaviewtomatchingtheresourcespaidby
eachMemberStatemorecloselywithitsabilityto
contribute,theEuropeanCouncilof11and12
December1992decidedtoamendthecompositionof
Communityownresources:
—tofixat1,4%themaximumratetobeappliedto
eachMemberState'suniformbaseforvalueadded
tax,limitedwhereappropriateto55%ofitsGNP,—byloweringtheceilingfortheuniformratetobe
appliedtotheuniformvalueaddedtaxbaseofeach
MemberStatefrom1,4%to1,0%inequalsteps
between1995and1999,
—tointroduceanadditionaltypeofownresourceto
balancebudgetrevenueandexpenditure,basedon
thesumofMemberStates'GNP;forthispurpose,
theCouncilwilladoptaDirectiveontheharmon­
izationofthecompilationofgrossnationalproduct
atmarketprices;—ifnecessary,bycappingat50%ofGNPfrom1995
onwardsthevalueaddedtaxbaseoftheMember
StateswhosepercapitaGNPislessthan90%ofthe
Communityaverageandbyreducingthecappingof
thebasefrom55to50%inequalstepsoverthe
period1995to1999fortheotherMemberStates;
[Whereasthecustomsdutiesonproductscomingunder
theTreatyestablishingtheEuropeanCoalandSteel
CommunityshouldbeincludedinCommunityown
resources;1WhereastheEuropeanCouncilof11and12December
confirmedtheformulaforthecalculationofthe
correctionofbudgetaryimbalancesdefinedinDecision
88/376/EEC,Euratom;
Whereas,byvirtueofArticle127ofthe1979Actof
AccessionandArticles187and374ofthe1985Actof
Accession,Greeceuntil1985andSpainandPortugal
until1991wererefundedaproportionoftheirpayments
ofVATownresources,theGNP-basedresourceand
GNP-based financialcontributions ;whereasthese
refundsconstitutedexpenditurefromthegeneralbudget;[WhereastheconclusionsoftheEuropeanCouncilof25
and26June1984onthecorrectionofbudgetary
imbalancescontinuetoapplyforthedurationofthis
Decision'svalidity;whereasthepresentcompensation
mechanismmust,however,beadjustedtotakeaccount
ofthecappingoftheVATbaseandtheintroductionof
anadditionalresourceandmustprovideforfinancingof
thecorrectiononthebasisofaGNPkey;whereasthis
adjustmentshouldensurethattheVATshareofthe
UnitedKingdomisreplacedbyitsshareofpayments
underthethirdandfourthresources(thoseprovidedby
VATandGNPrespectively)andthattheeffectonthe
UnitedKingdom,inrespectofagivenyear,ofthe
cappingoftheVATbaseandoftheintroductionofthe
fourthresourcewhichisnotcompensatedbythischange
willbeoffsetbyanadjustmenttothecompensation in
respectofthatyear;whereasthecontributionsofSpain
andPortugalshouldbereducedinaccordancewiththe
rebatesprovidedforinArticles187and374ofthe1985
ActofAccession;]WhereasanyadjustmentsofVATandGNPbasesfor
theyearsfrom1981to1991willentailcorrectionsofthe
amountsoftherefunds;whereasarrangementsshouldbe
madetotakeaccountofsuchadjustmentsinthegeneral
budget;

NoC300/20 OfficialJournaloftheEuropeanCommunities 6.11.93
ORIGINAL PROPOSAL AMENDED PROPOSAL
Whereasthebudgetaryimbalancesshouldbecorrected
insuchawayasnottoaffecttheownresources
availablefortheCommunity'spolicies;Whereasthebudgetaryimbalancesshouldbecorrected
insuchawayasnottoaffecttheownresources
availablefortheCommunity'spolicies;
Whereas[theconclusionsoftheEuropeanCouncilof
11,12and13February1988providedforthecreation,
intheCommunitybudget],ofamonetaryreserve,here­
inafterreferredtoasthe'EAGGFmonetaryreserve',to
offsettheimpactofsignificantandunforeseenfluctu­
ationsintheECU/dollarparityontheexpenditure
undertheGuaranteeSectionoftheEuropeanAgri­
culturalGuidanceandGuaranteeFund(EAGGF);
whereasthatreserve[shouldbe]coveredbyspecific
provisions;Whereasthemonetaryreserve,hereinafterreferredtoas
the'EAGGFmonetaryreserve',iscoveredbyspecific
provisions;
WhereastheconclusionsoftheEuropeanCouncilof11
and12December1992providedforthecreationinthe
Communitybudgetoftworeserves,onedesignedto
respondrapidlytoemergencyaidrequirements in
non-member countries,theothertofinancealoan
guaranteefund;whereasthosereservesshouldbe
coveredbyspecificprovisions;
WhereastheEuropeanCouncilofCopenhagenof22
and23June1993underlinedtheimportanceof
continuingtocombatfraudandirregularities in
connectionwiththeCommunitybudget;whereasmore
detailedprovisionsshouldbelaiddownconcerningthe
Commission'sroleinimprovingnationalVATregis­
tration,calculation,recoveryandcontrolprocedures;
WhereastheEuropeanCouncilhasaskedthe
Commissiontocarryoutastudyonthepossibilityof
creatingafifthresource;
Whereasprovisionsmustbelaiddowntocoverthe
changeoverfromthesystemintroducedbyDecision
[85/257/EEC,Euratom]tothatarisingfromthis
Decision;Whereasprovisionsmustbelaiddowntocoverthe
changeoverfromthesystemintroducedbyDecision
88/376/EEC,Euratomtothatarisingfromthis
Decision;
WhereastheEuropeanCouncilof11,12and13
February1988providedthatthisDecisionshouldtake
effecton1January1988,WhereastheEuropeanCouncilof11and12December
1992providedthatthisDecisionshouldtakeeffecton
1January1995,
HASLAIDDOWNTHESEPROVISIONS ,WHICHIT
RECOMMENDS TOTHEMEMBER STATESFOR
ADOPTION :HASLAIDDOWNTHESEPROVISIONS ,WHICHIT
RECOMMENDS TOTHEMEMBER STATESFOR
ADOPTION :
Article1
TheCommunities shallbeallocatedresourcesoftheir
owninaccordancewiththefollowingArticlesinorder
toensurethefinancingoftheirbudget.Article1
TheCommunities shallbeallocatedresourcesoftheir
owninaccordancewiththefollowingArticlesinorder
toensurethefinancingoftheirbudget.
ThebudgetoftheCommunities shall,irrespectiveof
otherrevenue,befinancedentirelyfromthe
Communities 'ownresources .ThebudgetoftheCommunities shall,irrespectiveof
otherrevenue,befinancedentirelyfromthe
Communities 'ownresources .

6.11.93 OfficialJournaloftheEuropeanCommunities NoC300/21
ORIGINALPROPOSAL AMENDED PROPOSAL
Article2
1.Revenuefromthefollowingshallconstituteown
resourcesenteredinthebudgetoftheCommunities :Article2
1.Revenuefromthefollowingshallconstituteown
resourcesenteredinthebudgetoftheCommunities :
(a)levies,premiums,additionalorcompensatory
amounts,additionalamountsorfactorsandother
dutiesestablishedortobeestablishedbythe
institutionsoftheCommunities inrespectoftrade
withnon-member countrieswithintheframeworkof
thecommonagriculturalpolicy,andalsocontri­
butionsandotherdutiesprovidedforwithinthe
frameworkofthecommonorganizationofthe
marketsinsugar;(a)levies,premiums,additionalorcompensatory
amounts,additionalamountsorfactorsandother
dutiesestablishedortobeestablishedbytljie
institutionsoftheCommunitiesinrespectoftrade
withnon-membercountrieswithintheframeworkof
thecommonagriculturalpolicy,andalsocontri­
butionsandotherdutiesprovidedforwithinthe
frameworkofthecommonorganizationofthe
marketsinsugar;
(b)CommonCustomsTariffdutiesandotherduties
establishedortobeestablishedbytheinstitutionsof
theCommunities inrespectoftradewith
non-member countriesandcustomsdutieson
productscomingundertheTreatyestablishingthe
EuropeanCoalandSteelCommunity ;(b)CommonCustomsTariffdutiesandotherduties
establishedortobeestablishedbytheinstitutionsof
theCommunities inrespectoftradewith
non-member countriesandcustomsdutieson
productscomingundertheTreatyestablishingthe
EuropeanCoalandSteelCommunity;
(c)theapplicationofauniformratevalidforall
MemberStatestotheVATassessmentbasewhichis
determinedinauniformmannerforMemberStates
accordingtoCommunityrules;however,the
assessmentbase[foranyMemberStatestobetaken
intoaccountforthepurposesofthisDecisionshall
notexceed55%ofitsGNP;1(c)theapplicationofauniformratevalidforall
MemberStatestotheVATassessmentbasewhichis
determinedinauniformmannerforMemberStates
accordingtoCommunityrules;however,the
assessmentbasetobetakenintoaccountforthe
purposeofthisDecisionshallnotexceed50%of
GNPinthecaseofMemberStateswhoseGNPin
lessthan90%oftheCommunityaverage;for
MemberStatesnotfulfillingthisconditionthe
assessmentbasetobetakenintoaccountshallnot
exceed:
—54%oftheirGNPin1995,
—53%oftheirGNPin1996,
—52%oftheirGNPin1997,
—51%oftheirGNPin1998,
—50%oftheirGNPin1999;
(d)theapplicationofarate—tobedeterminedunder
thebudgetaryprocedureinthelightofthetotalof
allotherrevenue—tothesumofalltheMember
States'GNPestablished inaccordance with
Communityrules[tobelaiddowninaDirective
adoptedunderArticle8(2)ofthisDecision].(d)theapplicationofarate—tobedeterminedunder
thebudgetaryprocedureinthelightofthetotalof
allotherrevenue—tothesumofalltheMember
States'GNPestablishedinaccordancewiththe
CommunityruleslaiddowninCouncilDirective
89/130/EEC,Euratom(').
oOJNoL49,21.2.1989,p.26.

NoC300/22 OfficialJournaloftheEuropeanCommunities 6.11.93
ORIGINAL PROPOSAL AMENDED PROPOSAL
2.Revenuederivingfromanynewchargesintroduced
withintheframeworkofacommonpolicy,in
accordancewiththeTreatyestablishingtheEuropean
EconomicCommunityortheTreatyestablishingthe
EuropeanAtomicEnergyCommunity,providedthe
procedurelaiddowninArticle201oftheTreatyestab­
lishingtheEuropeanEconomicCommunityorinArticle
173oftheTreatyestablishingtheEuropeanAtomic
EnergyCommunityhasbeenfollowed,shallalso
constituteownresourcesenteredinthebudgetofthe
Communities .2.Revenuederivingfromanynewchargesintroduced
withintheframeworkofacommonpolicy,in
accordancewiththeTreatyestablishingtheEuropean
EconomicCommunityortheTreatyestablishingthe
EuropeanAtomicEnergyCommunity,providedthe
procedurelaiddowninArticle201oftheTreatyestab­
lishingtheEuropeanEconomicCommunityorinArticle
173oftheTreatyestablishingtheEuropeanAtomic
EnergyCommunityhasbeenfollowed,shallalso
constituteownresourcesenteredinthebudgetofthe
Communities .
3.MemberStatesshallretain,bywayofcollection
costs,10%oftheamountspaidunder1(a)and(b).3.MemberStatesshallretain,bywayofcollection
costs,10%oftheamountspaidunder1(a)and(b).
4.Theuniformratereferredtoin1(c)shall
correspondtotherateresultingfrom:4.Theuniformratereferredtoin1(c)shall
correspondtotherateresultingfrom:
(a)theapplicationof[1,4%]totheVATassessment
basefortheMemberStates;and(a)theapplicationtotheVATassessmentbaseforthe
MemberStatesof:
1,32%in1995,
1,24%in1996,
1,16%in1997,
1,08%in1998,
1,00%in1999;and
(b)thedeductionofthegrossamountofthereference
compensationreferredtoinArticle4(2).Thegross
amountshallbethecompensation amountadjusted
forthefactthattheUnitedKingdomisnotpartici­
patinginthefinancingofitsowncompensationand
theFederalRepublicofGermany'sshareisreduced
byone-third.Itshallbecalculatedasifthereference
compensation amountwerefinancedbyMember
StatesaccordingtotheirVATassessmentbases
establishedinaccordancewithArticle2(1)(c).(b)thedeductionofthegrossamountofthereference
compensationreferredtoinArticle4(2).Thegross
amountshallbethecompensationamountadjusted
forthefactthattheUnitedKingdomisnotpartici­
patinginthefinancingofitsowncompensationand
theFederalRepublicofGermany'sshareisreduced
byone-third.Itshallbecalculatedasifthereference
compensation amountwerefinancedbyMember
StatesaccordingtotheirVATassessmentbases
establishedinaccordancewithArticle2(1)(c).[For
1988,thegrossamountofthereferencecompen­
sationshallbereducedbyECU780million.]
5.Theratefixedunderparagraph 1(d)shallapplyto
theGNPofeachMemberState.5.Theratefixedpursuanttoparagraph 1(d)shall
applytotheGNPofeachMemberState.
6.If,atthebeginningofthefinancialyear,thebudget
hasnotbeenadopted,thepreviousuniformVATrate
andrateapplicabletoMemberStates'GNP,without
prejudicetowhateverprovisions[maybeadopted]6.If,atthebeginningofthefinancialyear,thebudget
hasnotbeenadopted,thepreviousuniformVATrate
andrateapplicabletoMemberStates'GNP,without
prejudicetotheprovisionsadoptedinaccordance

6.11.93 OfficialJournaloftheEuropeanCommunities NoC300/23
ORIGINAL PROPOSAL AMENDED PROPOSAL
inaccordancewithArticle8(2)byreasonoftheentryof
anEAGGFmonetaryreserveinthebudget,shallremain
applicableuntiltheentryintoforceofthenewrates.withArticle7(2)asregardstheEAGGFmonetary
reserve,thereservetofinancetheLoanGuaranteeFund
andthereserveforemergencyaidinnon-member
countries,shallremainapplicableuntiltheentryinto
forceofthenewrates.
7.ForthepurposesofapplyingthisDecision,GNP
shallmeangrossnationalproductfortheyearatmarket
prices.7.[Bywayofderogationfrom1(c),if,on1January
ofthefinancialyearinquestion,therulesfordeter­
miningtheuniformbasisforassessingVATarenotyet
appliedinalltheMemberStates,thefinancialcontri­
butionwhichaMemberStatenotyetapplyingthis
uniformbasisistomaketothebudgetofthe
Communities inlieuofVATshallbedetermined
accordingtotheproportionofitsgrossnationalproduct
atmarketpricestothesumtotalofthegrossnational
productoftheMemberStatesatmarketpricesinthe
firstthreeyearsofthefive-yearperiodprecedingthe
yearinquestion.Thisderogationshallceasetohave
effectassoonastherulesfordeterminingtheuniform
basisforassessingVATareappliedinallMember
States.]
8.ForthepurposesofapplyingthisDecision,GNP
shallmeangrossnationalproductfortheyearatmarket
prices.
Article3
1.Thetotalamountofownresourcesassignedtothe
Communitiesmaynotexceed[1,20%]ofthetotalGNP
oftheCommunityforpaymentappropriations .
Thetotalamountofownresourcesassignedtothe
Communitiesmaynot,foranyoftheyearsduringthe
[1988to1992]period,exceedthefollowingpercentages
ofthetotalGNPoftheCommunityfortheyearin
question:Article3
1.Thetotalamountofownresourcesassignedtothe
Communitiesmaynotexceed1,27%ofthetotalGNP
oftheCommunityforpaymentappropriations .
Thetotalamountofownresourcesassignedtothe
Communitiesmaynot,foranyoftheyearsduringthe
period1995to1999,exceedthefollowingpercentagesof
thetotalGNPoftheCommunityfortheyearin
question :
—19951,21,
—19961,22,
—19971,24,
—19981,26,
—19991,27.[—1988:1,15,
—1989:1,17,
—1990:1,18,
—1991:1,19,
—1992:1,20].
2.Thecommitmentappropriations enteredinthe
generalbudgetoftheCommunitiesovertheperiod1995
to1999mustfollowanorderlyprogressionresultingina
totalamountwhichdoesnotexceed1,335%ofthetotal
GNPoftheCommunityin1999.Anorderlyratio
betweencommitmentappropriations andpaymentappro­
priationsshallbemaintainedtoguaranteetheircompati­
bilityandtoenabletheceilingmentionedinparagraph 1
tobeobservedinsubsequentyears.2.Thecommitmentappropriations enteredinthe
generalbudgetoftheCommunitiesovertheperiod
[1988to1992]mustfollowanorderlyprogression
resultinginatotalamountwhichdoesnotexceed
[1,30%]ofthetotalGNPoftheCommunityin[1992].
A[precise]ratiobetweencommitmentappropriations
andpaymentappropriations shallbemaintainedto
guaranteetheircompatibilityandtoenabletheceiling
mentionedinparagraph 1tobeobservedinsubsequent
years.

NoC300/24 OfficialJournaloftheEuropeanCommunities 6.11.93
ORIGINAL PROPOSAL AMENDED PROPOSAL
3.Theoverallceilingsreferredtoinparagraphs 1and
2shallcontinuetoapplyuntilsuchtimeasthisDecision
isamended.3.Theoverallceilingsreferredtoinparagraphs 1and
2shallcontinuetoapplyuntilsuchtimeasthisDecision
isamended.
Article4
TheUnitedKingdomshallbegrantedacorrectionin
respectofbudgetaryimbalances.Thiscorrectionshall
consistofabasicamountandanadjustment .The
adjustmentshallcorrectthebasicamounttoareference
compensationamount.Article4
TheUnitedKingdomshallbegrantedacorrectionin
respectofbudgetaryimbalances.Thiscorrectionshall
consistofabasicamountandanadjustment.The
adjustmentshallcorrectthebasicamounttoareference
compensation amount.
1.Thebasicamountshallbeestablishedby:
(a)calculatingthedifference,inthepreceding
financialyear,between:
—thepercentageshareoftheUnitedKingdom
inthesumtotalofthepaymentsreferredtoin
Article2(1)(c)and(d)madeduringthe
financialyear,includingadjustmentsatthe
uniformrateinrespectofearlierfinancial
years,and
—thepercentageshareoftheUnitedKingdom
intotalallocatedexpenditure;
(b)applyingthedifferencethusobtainedtototal
allocatedexpenditure;
(c)multiplyingtheresultby0,66%.1.Thebasicamountshallbeestablishedby:
(a)calculatingthedifference,inthepreceding
financialyear,between:
—thepercentageshareoftheUnitedKingdom
inthesumtotalofthepaymentsreferredtoin
Article2(1)(c)and(d)madeduringthe
financialyear,includingadjustmentsatthe
uniformrateinrespectofearlierfinancial
years,and
—thepercentageshareoftheUnitedKingdom
intotalallocatedexpenditure;
(b)applyingthedifferencethusobtainedtototal
allocatedexpenditure;
(c)multiplyingtheresultby0,66%.
2.Thereferencecompensation shallbethecorrection
resultingfromapplicationof(a),(b)and(c)below,
correctedbytheeffectsarisingfortheUnited
KingdomfromthechangeovertocappedVATand
thepaymentsreferredtoinArticle2(1)(d).2.Thereferencecompensation shallbethecorrection
resultingfromapplicationof(a),(b)and(c)below,
correctedbytheeffectsarisingfortheUnited
KingdomfromthechangeovertocappedVATand
thepaymentsreferredtoinArticle2(1)(d).
Itshallbeestablishedby:
(a)calculatingthedifference,inthepreceding
financialyear,between:
—thepercentageshareoftheUnitedKingdom
inthesumtotalofVATpaymentswhich
wouldhavebeenmadeduringthatfinancial
year,includingadjustmentsinrespectof
earlierfinancialyears,fortheamounts
financedbytheresourcesreferredtoinArticle
2(1)(c)and(d)iftheuniformVATratehad
beenappliedtonon-cappedbases,andItshallbeestablishedby:
(a)calculatingthedifference,inthepreceding
financialyear,between:
—thepercentageshareoftheUnitedKingdom
inthesumtotalofVATpaymentswhich
wouldhavebeenmadeduringthatfinancial
year,includingadjustmentsinrespectof
earlierfinancialyears,fortheamounts
financedbytheresourcesreferredtoinArticle
2(1)(c)and(d)iftheuniformVATratehad
beenappliedtonon-cappedbases,and

6.11.93 OfficialJournaloftheEuropeanCommunities NoC300/25
ORIGINAL PROPOSAL AMENDED PROPOSAL
thepercentageshareoftheUnitedKingdom
intotalallocatedexpenditure ;thepercentageshareoftheUnitedKingdom
intotalallocatedexpenditure;
(b)applyingthedifferencethusobtainedtototal
allocatedexpenditure ;(b)applyingthedifferencethusobtainedtototal
allocatedexpenditure ;
(c)multiplyingtheresultby0,66; (c)multiplyingtheresultby0,66;
(d)subtractingthepaymentsbytheUnitedKingdom
takenintoaccountinthefirstindentof1(a)from
thosetakenintoaccountinthefirstindentof
2(a);(d)subtractingthepaymentsbytheUnitedKingdom
takenintoaccountinthefirstindentof1(a)from
thosetakenintoaccountinthefirstindentof
2(a);
(e)subtractingtheamountcalculatedat(d)fromthe
amountcalculatedat(c).(e)subtractingtheamountcalculatedat(d)fromthe
amountcalculatedat(c).
3.Thebasicamountshallbeadjustedinsuchawayas3.Thebasicamountshallbeadjustedinsuchawayas
tocorrespondtothereferencecompensationamount.tocorrespondtothereferencecompensationamount.
Article5
1.Thecostofthecorrectionshallbebornebythe
otherMemberStatesinaccordancewiththefollowing
arrangements :Article5
1.Thecostofthecorrectionshallbebornebythe
otherMemberStatesinaccordancewiththefollowing
arrangements :
thedistributionofthecostshallfirstbecalculatedby
referencetoeachMemberState'sshareofthepayments
referredtoinArticle2(1)(d),theUnitedKingdom
beingexcluded;itshallthenbeadjustedinsuchawayas
torestricttheshareoftheFederalRepublicofGermany
totwo-thirdsoftheshareresultingfromthiscalculation .thedistributionofthecostshallfirstbecalculatedby
referencetoeachMemberState'sshareofthepayments
referredtoinArticle2(1)(d),theUnitedKingdom
beingexcluded;itshallthenbeadjustedinsuchawayas
torestricttheshareoftheFederalRepublicofGermany
totwo-thirdsoftheshareresultingfromthiscalculation .
2.ThecorrectionshallbegrantedtotheUnited
Kingdombyareductioninitspaymentsresultingfrom
theapplicationofArticle2.Thecostsbornebytheother
MemberStatesshallbeaddedtotheirpaymentsresulting
fromtheapplicationforeachMemberStateofArticle2.2.ThecorrectionshallbegrantedtotheUnited
Kingdombyareductioninitspaymentsresultingfrom
theapplicationofArticle2[(1)(c)].Thecostsborneby
theotherMemberStatesshallbeaddedtotheir
paymentsresultingfromtheapplicationforeach
MemberStateofArticle2[(1)(c)uptoa1,4%VAT
rateandArticle2(1)(d)l.
3.TheCommissionshallperformthecalculations
requiredfortheapplicationofArticle4andthisArticle.3.TheCommissionshallperformthecalculations
requiredfortheapplicationofArticle4andthisArticle.

NoC300/26 OfficialJournaloftheEuropeanCommunities 6.11.93
ORIGINAL PROPOSAL AMENDED PROPOSAL
4.If,atthebeginningofthefinancialyear,thebudget
hasnotbeenadopted,thecorrectiongrantedtothe
UnitedKingdomandthecostsbornebytheother
MemberStatesasenteredinthelastbudgetfinally
adoptedshallremainapplicable .4.If,atthebeginningofthefinancialyear,thebudget
hasnotbeenadopted,thecorrectiongrantedtothe
UnitedKingdomandthecostsbornebytheother
MemberStatesasenteredinthelastbudgetfinally
adoptedshallremainapplicable.
Article6
TherevenuereferredtoinArticle2shallbeused
withoutdistinctiontofinanceallexpenditureenteredin
thebudgetoftheCommunities .However,therevenue
neededtocoverinfullorinparttheEAGGFmonetary
reserve,enteredinthebudgetoftheCommunities ,shall
notbecalledupfromtheMemberStates[untilthe
reserve]isimplemented .Provisionsfortheoperationof
thatreserveshallbeadoptedasnecessaryinaccordance
withArticle8(2).Article6
TherevenuereferredtoinArticle2shallbeused
withoutdistinctiontofinanceallexpenditureenteredin
thebudgetoftheCommunities .However,therevenue
neededtocoverinfullorinparttheEAGGFmonetary
reserve,thereservetofinancetheLoanGuaranteeFund
andthereserveforemergencyaidinnon-member
countries,enteredinthebudgetoftheCommunities ,
shallnotbecalledupfromtheMemberStatesuntilthe
reservesareimplemented .Provisionsfortheoperationof
thosereservesshallbeadoptedasnecessaryin
accordancewithArticle7(2).
Theprecedingsubparagraph shallbewithoutprejudice
tothetreatmentofcontributionsbycertainMember
Statestosupplementary programmesprovidedforin
Article130LoftheTreatyestablishingtheEuropean
EconomicCommunity .Theprecedingsubparagraph shallbewithoutprejudice
tothetreatmentofcontributions bycertainMember
Statestosupplementary programmesprovidedforin
Article130LoftheTreatyestablishingtheEuropean
EconomicCommunity .
Article7
[AnysurplusoftheCommunities'revenueovertotal
actualexpenditureduringafinancialyearshallbe
carriedovertothefollowingfinancialyear.However,
anysurplusgeneratedbyatransferfromEAGGF
Guaranteechapterstothemonetaryreserveshallbe
regardedasconstitutingownresources.]
Article8
1.TheCommunityownresourcesreferredtoin
Article2(1)(a)and(b)shallbecollectedbytheMember
Statesinaccordancewiththenationalprovisions
imposedbylaw,regulationoradministrative action,
whichshall,whereappropriate,beadaptedtomeetthe
requirementsofCommunityrules.TheCommissionshall
examineatregularintervalsthenationalprovisions
communicated toitbytheMemberStates,transmitto
theMemberStatestheadjustmentsitdeemsnecessaryin
ordertoensurethattheycomplywithCommunityrules
andreporttothebudgetauthority.MemberStatesshall
maketheresourcesunderArticle2(1)(a)to(d)
availabletotheCommission .Article7
1.TheCommunityownresourcesreferredtoin
Article2(1)(a)and(b)shallbecollectedbytheMember
Statesinaccordancewiththenationalprovisions
imposedbylaw,regulationoradministrative action,
whichshall,whereappropriate,beadaptedtomeetthe
requirementsofCommunityrules.TheCommissionshall
examineatregularintervalsthenationalprovisions
communicated toitbytheMemberStates,transmitto
theMemberStatestheadjustmentsitdeemsnecessaryin
ordertoensurethattheycomplywithCommunityrules
andreporttothebudgetauthority.MemberStatesshall
maketheresourcesunderArticle2(1)(a)to(d)
availabietotheCommission .

6.11.93 OfficialJournaloftheEuropeanCommunities NoC300/27
ORIGINAL PROPOSAL AMENDED PROPOSAL
2.Withoutprejudicetotheauditingoftheaccounts
andtochecksthattheyarelawfulandregularandas
laiddowninArticle206aoftheTreatyestablishingthe
EuropeanEconomicCommunity,suchauditingand
checksbeingmainlyconcernedwiththereliabilityand
effectivenessofnationalsystemsandproceduresfor
determiningthebaseforownresourcesaccruingfrom
VATandGNPandwithoutprejudicetotheinspection
arrangementsmadepursuanttoArticle209(c)ofthat
Treaty,theCouncilshall,actirigunanimouslyona
proposalfromtheCommissionandafterconsultingthe
EuropeanParliament,adopttheprovisionsnecessaryto
applythisDecisionandtomakepossibletheinspection
ofthecollection,themakingavailabletothe
Commissionandpaymentoftherevenuereferredtoin
Articles2and5.2.Withoutprejudicetotheauditingoftheaccounts
andtochecksthattheyarelawfulandregularandas
laiddowninArticle206aoftheTreatyestablishingthe
EuropeanEconomicCommunity,suchauditingand
checksbeingmainlyconcernedwiththereliabilityand
effectivenessofnationalsystemsandproceduresfor
determiningthebaseforownresourcesaccruingfrom
VATandGNPandwithoutprejudicetotheinspection
arrangementsmadepursuanttoArticle209(c)ofthat
Treaty,theCouncilshall,actingunanimouslyona
proposalfromtheCommissionandafterconsultingthe
EuropeanParliament,adopttheprovisionsnecessaryto
applythisDecisionandtomakepossibletheinspection
ofthecollection,themakingavailabletothe
Commissionandpaymentoftherevenuereferredtoin
Articles2and5.Onthebasisoftheseprovisions,the
CommissionshallexaminetheVATregistration,calcu­
lation,recoveryandcontrolproceduresappliedinthe
MemberStatesandshall,ifnecessary,makerecommen­
dationsforenhancingtheeffectivenessofthose
procedures .
Article9 Article8
Themechanismforthegraduatedrefundofown
resourcesaccruingfromVATorGNP-basedfinancial
contributionsintroducedfortheKingdomofSpainand
thePortugueseRepublicupto1991byArticles187and
374ofthe1985ActofAccessionshallapplytotheown
resourcesaccruingfromVATandtheGNP-based
resourcereferredtoinArticle2(1)(c)and(d)ofthis
Decision.Itshallalsoapplytopaymentsbythesetwo
MemberStatesinaccordancewithArticle5(2)ofthis
Decision.Inthelattercasetherateofrefundshallbe
thatapplicablefortheyearinrespectofwhichthe
correctionisgranted.Themechanismforthegraduatedrefundofown
resourcesaccruingfromVATorGNP-basedfinancial
contributionsintroducedforGreeceupto1985by
Article127ofthe1979ActofAccessionandforSpain
andPortugalupto1991byArticles187and374ofthe
1985ActofAccessionshallapplytotheownresources
accruingfromVATandtheGNP-basedresource
referredtoinArticle2(1)(c)and(d)ofthisDecision.It
shallalsoapplytopaymentsbythetwolast-named
MemberStatesinaccordancewithArticle5(2)ofthis
Decision.Inthelattercasetherateofrefundshallbe
thatapplicablefortheyearinrespectofwhichthe
correctionisgranted.Correctionsofrefundsresulting
fromanyadjustmentsofVATandGNPbasesforthe
yearsfrom1981to1991shallbeenteredasnegativeor
positiverevenue,asappropriate,inthegeneralbudget.
Article10
TheCommissionshallsubmit,bytheendof[1991,]a
reportontheoperationofthesystem,[includinga
re-examination ofthecorrectionofbudgetary
imbalancesgrantedtotheUnitedKingdom],established
bythisDecision.Article9
TheCommissionshallsubmit,bytheendof1999,a
reportontheoperationofthesystemestablishedbythis
Decision.Togetherwiththisreportorseparately,itshall
alsopresentareportonthefindingsofastudyonthe
possibilitiesforcreatingafifthownresource.

NoC300/28 OfficialJournaloftheEuropeanCommunities 6.11.93
ORIGINAL PROPOSAL AMENDED PROPOSAL
Article10
1.MemberStatesshallbenotifiedofthisDecisionby
theSecretary-General oftheCounciloftheEuropean
Communities ;itshallbepublishedintheOfficialJournal
oftheEuropeanCommunities .
MemberStatesshallnotifytheSecretary-General ofthe
CounciloftheEuropeanCommunitieswithoutdelayof
thecompletionoftheproceduresfortheadoptionofthis
Decisioninaccordancewiththeirrespectiveconstitu­
tionalrequirements .
ThisDecisionshallenterintoforceonthefirstdayof
themonthfollowingreceiptofthelastofthenotifi­
cationsreferredtointhesecondsubparagraph .Itshall
takeeffecton1January1995.
2.(a)Subjectto(b),Decision88/376/EEC,EuratomArticle11
1.MemberStatesshallbenotifiedofthisDecisionby
theSecretary-General oftheCounciloftheEuropean
Communities ;itshallbepublishedintheOfficialJournal
oftheEuropeanCommunities .
MemberStatesshallnotifytheSecretary-General ofthe
CounciloftheEuropeanCommunitieswithoutdelayof
thecompletionoftheproceduresfortheadoptionofthis
Decisioninaccordancewiththeirrespectiveconstitu­
tionalrequirements .
ThisDecisionshallenterintoforceonthefirstdayof
themonthfollowingreceiptofthelastofthenotifi­
cationsreferredtointhesecondsubparagraph .Itshall
takeeffecton[1January1988].
2.(a)Subjectto[(b)and(c),]Decision[85/257/EEC,
Euratom]shallberepealedasof[1January1988].
AnyreferencestotheDecisionof21April1970
ortoDecision85/257/EEC,Euratomshallbe
construedasreferencestothisDecision .
(b)Article3ofDecision85/257/EEC,Euratomshall
continuetoapplytothecalculationand
adjustmentofrevenueaccruingfromthe
applicationofratestotheuncappeduniform
assessmentbasisforvalueaddedtaxin1987and
earlieryears.[For1988thedeductioninfavourof
theUnitedKingdominrespectofprevious
financialyearsshallbecalculatedinaccordance
withpoints(b)(i),(ii)and(iii)ofArticle3(3)of
thesaidDecision .Thedistributionofthecostof
financingitshallbecalculatedinaccordancewith
Article5(1)ofthisDecision.Theamountscorre­
spondingtothedeductionandthedistributionof
thecostoffinancingitshallbedealtwithin
accordancewithArticle5(2)ofthisDecision.]
WhenArticle2(7)hastobeapplied,thevalue
addedtaxpaymentsshallbereplacedbyfinancial
contributions inthecalculationsreferredtointhis
paragraphforanyMemberStateconcerned;this
systemshallalsoapplytothepayment ;of
adjustmentsofcorrectionsforearlieryears.
(c)Article4(2)ofDecision85/257/EEC,Euratom
shallcontinuetoapplytothefinancialcontri­
butionsneededtofinancethecompletionofthe
supplementary programmefortheoperationof
theHFR(high-fluxreactor)reactorof1984to
1987.]shallberepealedasof1January1995.Any
referencestotheDecisionof21April1970,to
Decision85/257/EEC,EuratomortoDecision
88/376/EEC,Euratomshallbeconstruedas
referencestothisDecision.
(b)Article3ofDecision85/257/EEC,Euratomshall
continuetoapplytothecalculationand
adjustmentofrevenueaccruingfromthe
applicationofratestotheuncappeduniformVAT
basefor1987andearlieryears.Articles2,4and5
ofDecision88/376/EEC,Euratomshallcontinue
toapplytothecalculationandadjustmentof
revenueaccruingfromtheapplicationofa
uniformratevalidforallMemberStatestothe
VATbasedeterminedinauniformmannerand
limitedto55%oftheGNPofeachMember
Stateandtothecalculationofthecorrectionof
budgetaryimbalancesgrantedtotheUnited
Kingdomfortheyears1988to1994.When
Article2(7)hastobeapplied,thevalueadded
taxpaymentsshallbereplacedbyfinancialcontri­
butionsinthecalculations referredinthis
paragraphforanyMemberStateconcerned;this
systemshallalsoapplytothepaymentof
adjustmentsofcorrectionsforearlieryears.