WRITTEN QUESTION E-1088/98

by Klaus Lukas (NI) to the Commission

(7 April 1998)

Subject: Contributions

According to a report in the daily newspaper "Die Presse" (27 February 1998), the head of the Commission's representation in Vienna is of the opinion that Austria could contribute more, since it is the fifth wealthiest country in the European Union, but only seventh in terms of per capita contributions.

How is the public assertion by the head of the Commission's representation in Vienna, Mr Wolfgang Streitenberger, that Austria contributes too little to the European Union's budget compared to its per capita income to be construed?

Should Austria prepare to pay higher contributions?

Why is Mr Streitenberger, a representative of the Commission, focusing on a redistribution of contributions, when in Agenda 2000 the Commission assumes that the contribution rates will remain constant in the medium term?

Does Mr Streitenberger have the authority to make such statements?

If so, exactly what plans does the Commission have for the future distribution of contributions?

If not, what does the Commission intend to do?

Answer given by Mr Liikanen on behalf of the Commission

(5 June 1998)

The data reported in Die Presse on 27 February 1998 are correct. Austria is indeed the fifth Member State according to gross national product (GNP) per head and it ranks seventh in terms of overall contributions to the Community budget in 1997. However, it is necessary to examine these data more carefully before arriving at a judgement about Austria's contributions to the Community budget.

The determinants of contributions to the Community budget have been set out in the most recent own resources decision, that of October 1994. The Community budget is financed through customs and agricultural duties (usually called the "traditional" own resources or TOR), a national contribution based on a harmonised value added tax (VAT) base and a national contribution based on GNP.

The volume of customs and agricultural duties reflects principally geographical and location advantages and, consequently, is not related to a Member State's ability to contribute to the Community budget. The amount of customs duties collected in Austria is much lower than in other Member States of comparable size which have major port facilities. By contrast, VAT and GNP contributions are correlated with contributive capacity. The Austrian contribution in this area corresponds to its relative wealth. These considerations explain the difference mentioned in the article of Die Presse and recalled in the opening paragraph of this answer.

The present system will remain in force unless it is changed through a unanimous decision of the Member States. Consequently, future developments in contributions will continue to reflect economic developments, in particular developments in Austria's VAT and GNP. Growth in total contributions, however, will also reflect growth in total expenditure. Over recent years, Community expenditure has been increasing very slowly. The use of cash balances available from the previous year has even resulted in the decrease in the Austrian contribution in 1998 mentioned in the Die Presse article.

The Commission, in accordance with Article 10 of Council Decision 94/728/EC of 31 October on the system of the European Communities' own resources(1), intends to publish by the autumn of this year a report on the operation of the present financing system. The report will address, among other questions, the issue of the so-called budgetary imbalances.

(1) OJ L 293, 12.11.1994.