Proposal for a COUNCIL DECISION on the system of own resources of the European Union
Date: 2011-06-29
Institutions: European Commission
Subjects: European Union, financing of the EU budget, own resources

EUROPEAN COMMISSION 

Brussels, 29.6.2011 
COM(2011) 510 final 

2011/0183 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the system of own resources of the European Union 

(//EC, Euratom) 
{SEC(2011) 876 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION – WHY REFORM IS NEEDED 

1.1.  The EU financing system is outdated 

The  EU  financing  system  has  evolved  considerably  since  1957.  It  relied  first  mainly  on 
contributions  from  Member  States.  From  1970,  a  system  of  own  resources  ensuring  the 
autonomy of EU finances was put in place. This was initially based primarily on traditional 
own resources linked to EU policies but the progressive development of the VAT- and GNI-
based  own  resources  marked  a  shift  towards  a  financing  mainly  based  on  statistical 
aggregates, which display no link to EU policy priorities.  

In  parallel  to  the  evolution  in  the  composition  of  own  resources,  a  number  of  correction 
mechanisms  were  introduced  based  on  principles  set  out  at  the  Fontainebleau  European 
Summit in June 1984. In particular "any member State sustaining a budgetary burden which 
is  excessive  in  relation  to  its  relative  prosperity  may  benefit  from  a  correction  at  the 
appropriate  time".  These  mechanisms  are  a  collection  of  diverse  measures,  resulting  from 
successive  negotiations  which  have  tended  to  add  new  measures  to  the  body  of  existing 
corrections. 

The  report  on  the  operation  of  the  own  resources  system1  demonstrates  that  the  current 
financing  system  performs  poorly  with  regard  to  most  assessment  criteria.  The  financing 
system  is  opaque  and  so  complex  that  only  a  handful  of  specialists  fully  understand  how  it 
works.  This  limits  democratic  oversight  of  the  system.  Moreover,  many  Member  States 
perceive  the  system  to  be  unfair.  Large  contributors  to  the  budget  consider  that  their  net 
contributions are too high, whereas a number of Member States benefitting from redistributive 
policies, such as cohesion, face increased contributions to the EU budget to finance correction 
mechanisms.  

More  importantly  perhaps,  the  way  the  EU  budget  is  financed  –  with  contributions  from 
Member  States  to  the  EU  being  seen  solely  as  expenditures  by  many  national  politicians  – 
inevitably creates a tension which poisons every debate about the EU Budget. The progressive 
development of correction mechanisms is just one symptom of this problem. The pressure to 
pre-determine  national  allocations  is  another.  The  increasing  focus  on  a  narrow  accounting 
approach with the main objective of maximising returns not only colours public debates about 
the  value  of  EU  spending.  It  also  leads  some  people  to  question  the  benefits  of  EU 
membership itself.  

The difficulties encountered in achieving agreements on budgetary matters in the EU in the 
21st  century  partly  result  from  an  inadequate  organisation  of  EU  public  finances.  For  many 
years,  EU  financing  has  primarily  been  treated  as  an  accounting  mechanism  with  two  main 
objectives: ensuring sufficient financing of EU expenditures and incorporating the increasing 
number of correcting mechanisms. As explained above, this approach has reached its limits. It 
is now time to envisage a different approach to EU financing. 

1 

Commission  Staff  Working  Paper  "Financing  the  EU  budget:  Report  on  the  operation  of  the  own 
resources system", SEC(2011) 876 final of 29.06.2011. 

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1.2.  A new paradigm for EU financing 

Considerable  challenges  in  the  area  of  public  finance  and  emerging  priorities  affect  deeply 
embedded notions related to the EU budget. A new paradigm for EU financing is emerging, 
based on two pillars. 

Firstly,  the  EU  financing  system  could  play  a  substantial  role  in  the  Union-wide  budgetary 
consolidation  efforts.  By  2010,  following  the  global  economic  and  financial  crisis,  the  total 
yearly  deficit  of  the  EU-27  Member  States  amounted  to  an  estimated  EUR  826.9  billion2. 
Public deficits in several of the largest Member States were actually bigger than the size of 
the  entire  EU  budget.  Recent  months  have  highlighted  persistent  difficulties  faced  by  a 
number of Member States. Budgetary consolidation efforts will be compounded by the cost of 
ageing populations3 and other challenges, such as climate change. In this context, five heads 
of States or governments stressed that "the next multiannual financial framework will come as 
Member States make extraordinary efforts to clean up public finances"4.  

Further reinforcing budgetary discipline at EU level will affect all aspects of the EU budget – 
not only EU expenditures, but also EU revenues. Developing the own resources system will 
contribute  to  the  wider  budgetary  consolidation  efforts  undertaken  by  Member  States.  The 
progressive introduction of new  resources opens the door for other resources to be reduced, 
phased-out  or  dropped.  As  a  result  Member  States  contributions  to  the  EU  budget  will 
diminish  and  Member  States  will  have  an  additional  degree  of  freedom  in  managing  scarce 
national resources. As indicated in the EU Budget Review, introducing new own resources "is 
not an argument about the size of the budget – it is a debate about the right mix of resources"5. 

Second, except for the traditional own resources (mainly customs duties originating from the 
customs union), the EU resources currently display almost no link to - nor do they support - 
EU  policy  objectives.  Yet,  as  indicated  in  the  EU  Budget  Review,  the  introduction  of  new 
own  resources  could  "mirror  the  progressive  shift  of  the  budget  structure  towards  policies 
closer to EU citizens and aiming at delivering European public goods and a higher EU added 
value.  It  could  support  –  and  be  closely  linked  to  –  the  achievement  of  important  EU  or 
international policy objectives, for instance in relation to development, climate change or the 
financial markets".  

New revenue streams can be developed taking advantage of a supranational approach and the 
critical mass that can be achieved at EU level. Where the mobility of some tax bases is too 
high  to  allow  effective  action  by  Member  States  acting  alone,  or  where  limited  actions  by 
some  Member  States  but  not  by  others  create  a  fragmentation  of  the  Internal  market,  EU 
action  can  add  value.  Financial  sector  taxation  is  particularly  relevant  in  this  respect.  In  its 
October 2010 communication on financial sector taxation the Commission indicated that new 
financial  sector  taxes  "could  help  to  create  the  conditions  for  more  sustainable  growth,  as 
envisaged  in  the  Europe  2020  strategy"6.  The  Commission  has  announced  a  legislative 
proposal for an EU financial transaction tax in the autumn. Moreover, further developing the 

2 
3 

4 

5 
6 

Source: ECFIN Spring 2011 forecasts. 
European  Commission,  DG  Economic  and  Financial  Affairs,  "2009  Ageing  Report.  Economic  and 
budgetary projections for the EU-27 Member States (2008-2060)", European Economy, 2/2009. 
Letter from David Cameron, Angela Merkel, Nicolas Sarkozy, Mark Rutte and Mari Kiviniemi to the 
President of the European Commission, 18 December 2010. 
COM(2010)700 of 19.10.2010. 
COM(2010)549 of 7.10.2010. 

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VAT  system  in  the  context  of  a  new  own  resource  could  also  reinforce  the  Internal  market 
and lead to economic efficiency gains.  

Reshaping the foundation of the EU financing system will generate a debate on the incidence 
of specific resources, away from an accounting approach limited to net balances calculations.  

At the same time, important elements of the current financing system need to be preserved, 
such  as  the  traditional  own  resources  and  a  residual  GNI-based  own  resource  permitting 
budgetary  stability  and  a  balanced  budget.  But  the  latter  can  be  achieved  with  a  smaller, 
residual GNI-based own resource and with a fundamentally different mix of resources. 

1.3.  The Lisbon Treaty creates a new legal framework 

The Treaty on the Functioning of the European Union (TFEU) introduces important changes, 
not only for EU budgetary procedure, but also the way the EU budget is financed. Two treaty 
provisions deserve particular attention in this context: 

(1) 

(2) 

Article 311(3) TFEU now provides that the Council "may establish new categories of 
own  resources  or  abolish  an  existing  category"  in  the  context  of  an  own  resources 
Decision. This opens the door to reducing the number of existing own resources and 
to creating new ones. 

Article  311(4)  TFEU  newly  provides  that  the  "Council,  acting  by  means  of 
regulations  in  accordance  with  a  special  legislative  procedure,  shall  lay  down 
implementing  measures  for  the  Union's  own  resources  system  in  so  far  as  this  is 
provided  for  in  the  [own  resources]  decision".  This  provision  introduces  the 
possibility of defining specific implementing measures related to the own resources 
system in an implementing regulation within the limits set out by the own resources 
Decision. 

The  Commission  proposals  make  full  use  of  these  new  possibilities  by  proposing  the 
elimination of the VAT-based own resource and the creation of new own resources, and by 
proposing a new organization of implementing measures for the own resources system.  

The  opportunity  offered  by  this  new  framework  has  been  taken  to  make  the  system 
sufficiently flexible within the framework and limits set out by the own resource Decision by 
placing all the practical arrangements for the Union’s resources which should be governed by 
a more streamlined procedure in an implementing regulation rather than in the Decision itself. 
These  proposals  reflect  the  intentions  of  the  legislator  expressed  in  the  Convention  on  the 
future of Europe and endorsed by the subsequent intergovernmental conference.  

2. 

THREE PROPOSALS – ONE DECISION 

The  proposed  own  resources  Decision  includes  three  main  elements:  the  simplification  of 
Member  States'  contributions,  the  introduction  of  new  own  resources  and  the  reform  of 
correction mechanisms. The Commission report on the operation of the own resources system 
highlights how each of these proposals relates to- and complement the others. Taken together 
these  proposals  constitute  a  balanced  package  which  must  be  looked  at  as  a  whole  in  the 
context of a single decision.  

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2.1. 

Simplifying Member States' contributions 

The  Commission  proposes  that  the  VAT-based  own  resource  be  eliminated  in  parallel  with 
the  introduction  of  new  own  resources.  This  is  in  line  with  the  views  expressed  by  most 
Member States and the EU institutions in the consultations linked to the Budget Review.  

The  existing  VAT-based  own  resource  is  complex,  requires  much  administrative  work  to 
arrive at a harmonized  base, and  offers little or no added value compared to the GNI-based 
own resource. Its removal will considerably simplify the national contributions and reduce the 
administrative burden for both the Commission and Member States.  

Considering the administrative complexities related to this own resource and the low call rates 
currently  in  place,  phasing  it  out  step-by-step  would  be  less  efficient  than  a  fully-fledged 
elimination on a given date. It is therefore proposed to abolish this resource on 31 December 
2013.  Should  the  Decision  enter  into  force  at  a  later  date,  this  provision  will  be  enacted  on 
retroactive  basis,  following  a  common  practice  in  past  revisions  of  the  own  resources 
decisions.  Using  31  December  as  an  end  point  will  avoid  calculating  the  resource  for  a 
fraction of a given year.  

Following  the  ending  of  the  VAT-based  own  resource,  further  activity  will  be  required: 
managing  the  annual  VAT  statements  for  the  year  preceding  the  ending  of  the  resource, 
undertaking  the  annual  VAT  balance  exercise,  making  controls  to  give  assurance  on  the 
accuracy  of  the  calculations,  completing  the  supervision  cycle,  managing  outstanding 
reservations, infringements, corrections and accounting reconciliations. Final extinction of all 
VAT-based own resource related activities will take several years. 

2.2. 

Introducing new own resources 

The  Commission  identified  six  potential  candidates  as  own  resources  in  the  EU  Budget 
Review.  These  were  subject  to  a  thorough  analysis,  particularly  featuring  the  assessment 
criteria set out in the Budget Review. 

This analysis highlighted the following key elements: 

(1) 

Financial  transaction  taxation  (FTT)  could  constitute  a  new  revenue  stream,  which 
could  reduce  the  existing  Member  State  contributions,  give  national  governments 
extra  room  for  manoeuvre  and  contribute  to  the  general  budgetary  consolidation 
effort.  Although  some  form  of  financial  transaction  taxation  already  exists  in  a 
limited number of Member States, the analysis also made it clear that action at EU 
level  could  prove  both  more  effective  and  efficient  than  uncoordinated  action  by 
Member States given the level of cross-border activity and high mobility of the tax 
bases. Furthermore, it could play a role in reducing the existing fragmentation of the 
Internal  market.  The  Commission  will  therefore  present  a  proposal  for  an  EU 
financial transaction tax in the autumn of 2011. A financial transaction tax that could 
be  collected  at  EU  level  would  reduce  the  juste  retour  problems  observed  in  the 
current system. The EU initiative will constitute a first step towards the application 
of a FTT at global level.  

(2) 

The  development  of  a  new  VAT  resource  would  bring  a  new  impetus  to  the 
development  of  the  Internal  market  by  reinforcing  harmonization  of  national  VAT 
systems.  The  new  VAT  resource  would  be  one  facet  of  a  markedly  revised  VAT 

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system  in  the  EU  in  the  wake  of  the  Green  Paper  on  the  future  of  VAT.  The  new 
initiative will include the elimination of a number of exemptions or exceptions which 
are detrimental to the proper functioning of the Internal market and the measures to 
reduce VAT fraud in the EU.  

(3) 

The analysis showed that these own resources could be introduced at EU level during 
the  2014-2020  period  following  a  suitable  period  of  technical  preparation. 
Combining  these  own  resources  would  bring  additional  advantages  compared  to 
introducing only one new own resource. It would ensure a fair distribution of impact 
across  the  various  Member  States  and  the  critical  mass  necessary  to  substantially 
reduce the existing Member States contributions to the EU budget. 

On  the  basis  of  its  analysis,  the  Commission  proposes  the  introduction  of  a  financial 
transaction tax own resource from 1 January 2018 at the latest and a new VAT resource from 
1 January 2018 at the latest. The timing of introduction of these new own resources reflects 
the  time  needed  for  completing  the  legal  framework,  and  adopting  and  implementing  the 
relevant  legislation.  The  Commission  will  present  the  relevant  detailed  regulations  or 
amendments to existing legal acts as well as the related implementing regulations pursuant to 
Article 322(2) TFEU by the end of 2011. 

The resulting estimated impact on the structure of own resources is summarized in the table 
below.  It  shows  the  shift  from  the  existing  national  contributions  towards  the  new  own 
resources. The new own resources would finance around 40% of EU expenditures. Traditional 
own  resources  would  account  for  close  to  20%  of  the  total.  The  GNI-based  own  resource 
would remain the single most important resource financing about 40% of the budget. 

Estimated evolution of the structure of EU financing (2012-2020) 

Draft budget 2012 

2020 

EUR billion  % of own 
resources 

EUR billion   % of own 
resources 

Traditional own resources  

Existing national contributions 

of which 

VAT-based own resource 

GNI-based own resource 

New own resources 

of which 

New VAT resource 

EU financial transaction tax  

19.3 

111.8 

14.5 

97.3 

- 

- 

- 

14.7 

85.3 

11.1 

74.2 

- 

- 

- 

Total own resources 

131.1 

100.0 

30.7 

65.6 

- 

65.6 

66.3 

29.4 

37.0 

162.7 

18.9 

40.3 

- 

40.3 

40.8 

18.1 

22.7 

100.0 

2.3.  Reforming the correction mechanisms 

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The  1984  Fontainebleau  European  Council  set  out  important  guiding  principles  to  ensure 
fairness in the EU budget. It indicated in particular that "expenditure policy is ultimately the 
essential  means  of  resolving  the  question  of  budgetary  imbalances".  It  acknowledged, 
nevertheless,  that  "any  member  State  sustaining  a  budgetary  burden  which  is  excessive  in 
relation to its relative prosperity may benefit from a correction at the appropriate time".  

These  principles  have  been  confirmed  and  consistently  applied  in  successive  own  resources 
Decisions. Today, temporary mechanisms of correction are granted to four Member States but 
they will end in 2013. The correction granted to the United Kingdom (UK) and rebates on its 
financing for four Member States (Germany, the Netherlands, Austria and Sweden), as well as 
the  hidden  correction  consisting  in  the  retention,  by  way  of  collection  costs,  of  25%  of  the 
amounts collected by the Member States for traditional own resources, will continue to apply 
until a new own resources Decision enters into force. In the context of this in-depth revision 
of the EU financing, a fresh look at these correction mechanisms is necessary. 

Two important lessons emerge from the analysis of the current system: 

Firstly, the objective situation of a number of Member States has evolved strongly over time. 
This must be properly reflected in the corrections system.  

On  the  basis  of  the  Fontainebleau  principles,  the  UK  correction  was  fully  justified  when  it 
was set up in 1984. At the time, the UK, one of the poorest Member States, was one of the 
largest  net  contributors  to  an  EU  budget  consisting  mainly  of  agriculture  expenditure.  It 
contributed a relatively large amount to an EU financing system heavily reliant on the VAT-
based own resource, the base for which was particularly large in the UK.  

The  objective  conditions  underpinning  the  current  correction  mechanisms  have  evolved 
considerably since 1984. The share of the CAP in the EU budget and VAT-based financing 
decreased  considerably.  Most  importantly,  the  UK  is  now  one  of  the  more  affluent  EU 
Member  States.  On  the  basis  of  these  elements  and  an  assessment  of  the  UK's  budgetary 
burden  and  relative  prosperity  compared  to  that  of  other  Member  States,  the  UK  correction 
should be re-assessed.  

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Evolution of key parameters (1984-2011) 

Share  of  CAP  in  budget 
(% of total) 

VAT-based  contribution 
(% of total) 

UK prosperity 
(GNI per capita PPS) 

1984 

69% 

57% 

2005 

50% 

16% 

2011 

44% 

11% 

93% of EU-10 

117% of EU-25 

111% of EU-27 

Source: European Commission, DG Budget 

On the basis of the financial framework 2014-2020 proposed by the Commission7 and even 
allowing  for  the  full  cost  of  enlargement  to  be  fairly  distributed  among  the  richer  Member 
States,  it  would  appear  that  a  limited  number  of  Member  States,  including  the  United 
Kingdom, will still be faced with a budgetary burden that might be considered excessive when 
compared to their relative prosperity.  

This Decision therefore proposes the inclusion of temporary corrections in favour of Germany 
the Netherlands, Sweden and the United Kingdom from 2014. These corrections must reflect, 
inter alia, the important developments in the financing of the EU set out in this Decision, the 
evolution of expenditure proposed in the financial framework including the completion of the 
phasing-in of expenditure in those Member States which acceded to the EU in 2004 and 2007, 
and the high level of prosperity achieved by the above-mentioned Member States.  

Secondly,  the  new  system  of  correction  must  be  transparent  and  simple,  genuinely  open  to 
public  and  parliamentary  scrutiny,  predictable  and  efficient.  It  must  also  ensure  an  equal 
treatment of the Member States.  

As it is calculated today, the UK correction is a hugely complex mechanism. It incorporates 
intrinsically  perverse  economic  incentives,  not  least  the  automatic  cancelling  out  (via  a 
decrease in the correction) of EU aid paid to the UK for example when catastrophes, such as 
flooding,  occur.  It  is  also  the  basis  of  rebates  on  the  financing  of  the  UK  correction  for 
Germany, the Netherlands, Austria and Sweden. With the elimination of the VAT-based own 
resource,  some  data  essential  for  calculating  the  UK  correction  will  no  longer  be  available, 
which adds a technical argument in favour of an in-depth revision of the mechanism.  

The  Commission  therefore  proposes  a  new  system  of  lump  sums  to  replace  all  pre-existing 
correction  mechanisms  as  of  1  January  2014.  Transforming  the  current  corrections  into  a 
lump  sum  gross  reduction  on  GNI  payments  offers  clear  advantages  compared  to  any 
alternative  formula,  including  a  generalised  correction  mechanism  as  the  Commission 
proposed  back  in  20048.  The  amounts  of  the  lump  sums  are  based  on  current  assumptions 
independent of the introduction of new own resources. 

7 
8 

COM(2011) 398 final of 29.06.2011. 
COM(2004)505 final of 14 July 2004. 

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The  updates  for  the  UK  corrections  of  2010,  2011  and  2012  will  be  treated  under  the  old 
system for reasons of coherence and continuity, but the UK correction for 2013, which was to 
be  budgeted  in  2014,  will  be  replaced  by  the  new  system  of  lump  sum  corrections.  These 
corrections  will  be  financed  in  a  fair  and  transparent  manner  whereby  each  Member  State 
contributes in proportion of its relative prosperity (defined by its GNI at market price).  

In the same spirit of transparency and fairness, the Commission proposes the elimination of 
the  hidden  correction  consisting  in  the  retention,  by  way  of  collection  costs,  of  25%  of  the 
amounts collected by the Member States for traditional own resources. In view of the proposal 
to  incorporate  the  corrections  into  lump  sums,  the  retention  should  be  restricted  to  10%,  in 
line with the system in place until 2000. 

3. 

THE OWN RESOURCES PACKAGE 

3.1.  The legal instruments 

The  Treaty  on  the  Functioning  of  the  European  Union  (hereinafter  "TFEU")  contains  the 
provisions  underpinning  the  EU  financing  system  and,  in  particular,  its  own  resources.  It 
confirms the key role of the own resources Decision, which should include the main elements 
of the system.  

The  TFEU  also  includes  two  provisions  regarding  the  implementation  of  the  own  resources 
Decisions instead of one only in the previous Treaty on the European Community: 

(1) 

(2) 

Article  311(4)  TFEU  newly  provides  that  the  "Council,  acting  by  means  of 
regulations  in  accordance  with  a  special  legislative  procedure,  shall  lay  down 
implementing  measures  for  the  Union's  own  resources  system  in  so  far  as  this  is 
provided  for  in  the  [own  resources]  decision.  The  Council  shall  act  after  obtaining 
the consent of the European Parliament".  

Article  322(2)  TFEU  provides  that  the  "Council,  acting  on  a  proposal  from  the 
Commission and after consulting the European Parliament and the Court of Auditors, 
shall  determine  the  methods  and  procedure  whereby  the  budget  revenue  provided 
under the arrangements relating to the Union's own resources shall be made available 
to  the  Commission,  and  determine  the  measures  to  be  applied,  if  need  be,  to  meet 
cash requirements".  

The implementing measures for the own resources system thus stem from two articles of the 
TFEU  and  have  different  adoption  procedures:  consent  of  the  European  Parliament  is 
necessary  for  the  adoption  of  measures  under  Article  311(4)  TFEU  and  it  is  consulted  for 
measures under Article 322(2). The implementing measures under Article 311(4) TFEU need 
to be provided for in the own resources Decision, whereas Article 322(2) TFEU defines that 
measures must be made for making EU budget revenue available and, if need be, to meet cash 
requirements. 

This poses the question of which elements should be defined in the own resources Decision 
itself and which implementing measures should be included in which regulations. When the 
treaty  was  drafted  the  intention  of  the  legislator  was  that  "the  system  of  resources  should 
distinguish  between  two  legal  bases,  each  with  its  separate  procedure.  One  for  setting  the 
ceiling  of  own  resources  and  hence  the  size  of  the  Union’s  budget  and  for  creating  new 
resources, which would be governed by the more cumbersome procedure under the [Treaty] 

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[...]; The other concerning the practical procedures for the Union’s resources, which would be 
governed by a more streamlined procedure: adoption by the Council by a qualified majority 
[…] with the assent of the European Parliament"9. 

The proposed organisation of the legislative framework for the own resources system closely 
follows this logic by setting out the system in the own resources Decision and providing for 
all the practical aspects in the relevant implementing regulations. 

3.2.  Key role of the own resources Decision 

As  the  key  legal  instrument  underlying  the  entire  own  resources  system,  the  own  resources 
Decision will continue to include the main elements of the system. In the context set out by 
the TFEU, it should not necessarily be revised with each new financial framework. It should 
rather  constitute  a  solid,  stable,  and  long-lasting  foundation  on  which  the  own  resources 
system  is  built.  Its  unanimous  approval  and  ratification  by  the  Member  States  permit  a  full 
parliamentary scrutiny and ensure that national sovereignty is respected. 

The  proposal  essentially  maintains  the  structure  of  the  current  own  resources  Decision  and 
contains  many  of  the  existing  provisions.  However,  some  substantial  modifications  are  also 
included: 

(1) 

(2) 

(3) 

(4) 

the ending of the VAT–based own resources on 31 December 2013 and the inclusion 
of a provision dealing with its phasing-out in the final provisions.  

a list  of new own resources, including the timing of their introduction and relevant 
limits to their application. In particular, the Decision contains a maximum limit to the 
tax rates applicable to the new own resources, whereas the implementing regulation 
pursuant to Article 311(4) presents specific rates. This arrangement provides for both 
the  necessary  control  of  tax  rates  by  the  Member  States  and  their  respective 
parliaments and for some flexibility under the democratic oversight of the European 
Parliament.  This  flexibility  will  be  particularly  useful  at  early  stages  of  the 
implementation  of  the  new  own  resources,  when  uncertainties  as  to  their  precise 
impacts will  be highest. The  specific  rates for financial transaction taxation  will be 
proposed together with the concrete legislative proposal in the autumn; 

the provisions related to the correction mechanisms and the ending of the current UK 
correction. The Decision defines the lump sum reduction on GNI payments attributed 
to  each  of  the  Member  States  concerned  for  every  year.  The  Decision  includes  an 
article  on  the  financing  of  these  corrections,  which  would  be  based  on  the  relative 
prosperity of all Member States; 

the  removal  of  provisions  dealing  with  the  definition  of  GNI  for  own  resources 
purposes  and  the  recalculation  of  own  resources  ceilings  in  case  of  significant 
changes  to  GNI.  This  is  a  technical  issue,  which  is  addressed  in  the  implementing 
regulation under Article 311(4) TFEU; 

9 

See  in  particular  the  "Final  report  of  the  discussion  circle  on  own  resources"  to  the  European 
Convention, CONV 730/03, 08/05/2003.  

EN 

9 

   EN 

 
                                                 
(5) 

the  introduction  of  a  new  article  detailing  the  elements  to  be  included  in 
implementing  regulations  pursuant  to  Article  311(4)  TFEU  and  Article  322(2) 
TFEU.  

Compared  to  the  own  resources  Decision  2007/436/EC,  the  proposed  new  own  resource 
Decision is more transparent and can be easily understood by EU citizens and members of the 
EU and national parliaments.  

3.3. 

Implementing regulation 

The  new  implementing  regulation  pursuant  to  Article  311(4)  TFEU,  contains  all  those 
practical  arrangements  for  the  Union’s  resources  which  should  be  governed  by  a  more 
streamlined procedure in order to make the system sufficiently flexible within the framework 
and  limits  set  out  by  the  own  resource  Decision,  with  the  exception  of  those  aspects  of  the 
own resources system that relate to the making own resources available and to meeting cash 
requirements (see section 3.4 below). 

Provisions  of  a  general  nature,  applicable  to  all  types  of  own  resources  and  for  which 
appropriate parliamentary oversight is particularly important have also been included in this 
implementing  regulation.  This  means  in  particular  aspects  of  control  and  supervision  of 
revenues and the related powers of Commission inspectors. 

Accordingly, the following provisions, set out in accordance with  the  list drawn  in  the own 
resources Decision, can be found in this implementing regulation: 

(1) 

(2) 

(3) 

(4) 

the tax rates and the rates of call applicable for each of the own resources established 
in  the  Decision.  This  allows  limited  flexibility  within  the  limits  set  out  in  the  own 
resources Decision. In the absence of such flexibility, the ability to make necessary 
and  timely  adjustments  to  own  resources  would  be  impaired  by  the  onerous  and 
lengthy procedure foreseen for the adoption of own resources Decisions; 

the  reference  Gross  National  Income  (GNI)  pursuant  to  the  European  system  of 
national  and  regional  accounts  (ESA)  and  the  provisions  in  case  of  significant 
changes thereto (the refinement of GNI measurements in the context of revisions to 
the ESA can impact upon the own resources ceilings); 

the  adjustment  for  the  annual  budgetary  balance.  Whereas  the  general  principle  of 
surplus carry-over is set out in the Decision, the implementation measures are set out 
in this regulation; 

the  provisions  concerning  control  and  supervision,  including  supplementary 
reporting requirements. 

A number of these measures are currently included in Regulation 1150/2000 namely point (3) 
and certain elements of point (4) relating notably to the reporting of entitlements, frauds and 
irregularities and the arrangements for the Advisory Committee on Own Resources (ACOR). 
As  these  items  are  not  directly  related  to  making  own  resources  available  nor  to  cash 
requirements,  these  items  logically  find  their  place  in  this  implementing  Regulation.  The 
opportunity has also  been  taken  to simplify the  current  legal  framework  by  taking  over  and 
update  the  provisions  related  to  the  powers  and  obligations  of  Commission  inspectors 

EN 

10 

   EN 

 
previously included in Council Regulation 1026/99, which is thus to be repealed following the 
adoption of this Regulation. 

Combined  with  the  own  resources  Decision,  this  implementing  regulation  ensures  that  any 
technical  adjustment  to  the  system  has  been  subject  not  only  to  approval  by  the  national 
legislatures, but also to the consent of the European Parliament. 

3.4.  Making own resources available 

As a complement to the own resources Decision and the implementing regulation pursuant to 
Article  311(4)  TFEU,  regulations  pursuant  to  Article  322(2)  TFEU  should  comprise  the 
elements  concerning  making  own  resources  available  and  the  measures  to  meet  cash 
requirements.  

The Commission proposes a two-steps approach.  

First,  as  part  of  this  own  resources  package,  it  proposes  to  include  in  a  new  Council 
Regulation  pursuant  to  Article  322(2)  TFEU  the  provisions  necessary  to  determine  the 
methods  and  procedure  whereby  Member  States  make  available  to  the  Commission  the 
traditional  own  resources  (TOR)  and  the  GNI-based  own  resource.  This  document  also 
includes the measures to be applied, if need be, to meet cash requirements.  

These practical arrangements implement the system set out in the own resources Decision in 
respect  of  the  establishment  of  TOR,  conservation  of  supporting  documents,  administrative 
cooperation, accounts to be kept for own resources, the timing for making them available and 
for  making  adjustments  and,  where  necessary,  provisions  concerning  cash  management  and 
irrecoverable amounts. 

In practice, the proposal incorporates the provisions of Council Regulation (EC, Euratom) No 
1150/200010 with the exception of those not strictly related to the making available of TOR 
and  the  GNI-based  own  resource  or  to  cash  requirements.  For  reasons  of  clarity  and 
rationality, and in the context of the own resources package, Regulation No 1150/2000 should 
therefore  be  recast.  This  does  not  entail  material  changes  in  the  existing  provisions.  A  very 
small number of substantive amendments are however needed to reflect recent experience in 
the management of TOR and the GNI-based own resource by the Commission.  

Second, provisions will be needed to take account of the proposed new own resources. These 
could include the definition of the chargeable event; the tax point to tie the chargeable event 
to an accounting entry; the form and frequency of the declaration or statement to be made to 
the  Commission;  the  setting  out  the  mechanisms  by  which  payment  is  to  be  made  or  the 
resources  made  available;  the  applicable  sanctions;  the  circumstances  in  which  corrections 
can  be  made  and  instructions  concerning  the  time  limits  for  conserving  supporting 
documentation.  

Provisions covering the relevant topics will be needed for the proposed new own resource and 
will be included in separate Regulations, as appropriate.  

10 

OJ L 130, 31.5.2000, p.1. 

EN 

11 

   EN 

 
                                                 
2011/0183 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the system of own resources of the European Union 

(//EC, Euratom) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
third  paragraph  of  Article 311  thereof,  in  conjunction  with  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 Parliament11, 

Having regard to the opinion of the Court of Auditors12, 

Having regard to the opinion of the European Economic and Social Committee13, 

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

The  own  resources  system  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 own resources system can and should 
also contribute to wider budgetary consolidation efforts undertaken in Member States 
and participate, to the greatest extent possible, in the development of the policies of 
the Union. 

The public consultation launched to prepare the EU Budget Review generated many 
contributions  related  to  the  functioning  of  the  Union's  financing  system.  These 
indicated  a  high  degree  of  satisfaction  with  traditional  own  resources  and  with  the 
existence of a residual resource to ensure budgetary stability and balanced budgets. 
However, a large number of respondents identified a need to eliminate all correction 
mechanisms  and  to  end  the  own  resource  based  on  Value  Added  Tax  (VAT).  The 
consultation  also  highlighted  a  wide  range  of  views  on  introducing  new  own 
resources. 

11 
12 
13 

Opinion delivered on XX.6.2011 
OJ C  
OJ C  

EN 

12 

   EN 

 
                                                 
(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

In  the  communication  of  19  October  2010  on  the  EU  Budget  Review14  the 
Commission  noted  that  the  introduction  of  a  new  phase  in  the  evolution  of  the 
Union's financing could include three closely linked dimensions – the simplification 
of  Member  States'  contributions,  the  introduction  of  one  or  several  new  own 
resources and the progressive phasing-out of all correction mechanisms. As changes 
were  phased  in,  essential  elements  of  the  Union's  financing  system  should  be 
retained:  a  stable  and  sufficient  financing  of  the  Union's  annual  budget,  respect  for 
budgetary discipline and a mechanism to ensure a balanced budget. 

The  own  resources  system  should,  as  far  as  possible  rely  on  autonomous  own 
resources  in  the  spirit  of  the  Treaty,  rather  than  on  financial  contributions  from 
Member States which they widely perceive as national expenditures.  

The Lisbon Treaty introduced changes to the provisions related to the own resources 
system, which enable reducing the number of existing resources and to creating new 
own resources.  

The own resources Decision can only enter into force once it has been approved by 
all  Member  States  in  accordance  with  their  respective  constitutional  requirements, 
thus fully respecting national sovereignty. 

Compared  to the  own resource  based  on Gross National  Income (GNI), the current 
VAT-based  own  resource  has  little  added  value.  It  results  from  a  complex 
mathematical  calculation  thus  contributing  to  the  opacity  of  Member  States' 
contributions to the budget. The calculation of a harmonised base and the existing of 
a capping mechanism make that there is no direct link between the actual VAT basis 
in  a  Member  State  and  its  contribution  to  the  Union's  annual  budget.  Ending  the 
VAT-based  own  resource  in  its  current  form  as  of  1  January  2014  should  simplify 
the system of contributions. 

In order to better align Union's financing instruments with the policy priorities of the 
Union, to reduce Member States' contributions to the Union's annual budget and to 
participate in their budgetary consolidation efforts, this Decision should include new 
own resources – a financial transaction tax and a new VAT resource.  

The key principles, variables and dates for the adaptation of the legal framework of 
the Union for the purposes of the new own resources from a financial transaction tax 
and a new VAT resource should be set out in this Decision. 

The  1984  Fontainebleau  European  Council  indicated  that  expenditure  policy  is 
ultimately the essential means of resolving the question of budgetary imbalances. It 
acknowledged,  nevertheless,  that  any  Member  State  sustaining  a  budgetary  burden 
which is excessive in relation to its relative prosperity may benefit from a correction 
at  the  appropriate  time.  Those  principles  should  be  confirmed  and  consistently 
applied. 

(11) 

Any  correction  mechanism  should  be  closely  related  to  the  expenditure  policy 
enshrined in the multiannual financial framework provided for in Article 312 of the 

14 

COM(2010)700 of 19.10.2010. 

EN 

13 

   EN 

 
                                                 
(12) 

(13) 

(14) 

(15) 

Treaty.  Past  or  current  existence  of  a  correction  mechanism  does  not,  by  itself, 
constitute  a  justification  for  maintaining  it  in  the  future.  A  correction  should  be 
transparent and easy to understand, and last only as long as it serves its purpose, as 
defined by the Fontainebleau principles. It should avoid creating any incentive not to 
spend Union funds properly. These objectives can best be achieved through a system 
of lump sum reductions in the GNI-based own resource payments.  

The  objective  conditions  underpinning  correction  mechanisms  have  evolved 
considerably  over  time.  Nevertheless,  a  limited  number  of  Member  States  are  still 
faced  with  a  budgetary  burden  that  might  be  currently  considered  excessive  when 
compared  to  their  relative  prosperity.  This  Decision  should  therefore  include 
temporary corrections in favour of Germany the Netherlands, Sweden and the United 
Kingdom. These corrections should reflect, inter alia, the important developments in 
the  financing  of  the  Union  set  out  in  this  Decision,  the  evolution  of  expenditures 
proposed in the financial framework, including the completion of the phasing-in of 
expenditure in those Member States which acceded to the Union in 2004 and 2007, 
and  take  account  of  the  high  levels  of  prosperity  achieved  by  Germany  the 
Netherlands, Sweden and the United Kingdom.  

In  order  to  ensure  the  necessary  parallelism  between  the  multiannual  financial 
framework  and  the  implementation  of  correction  mechanisms,  the  new  system  of 
lump  sums  should  replace  all  pre-existing  correction  mechanisms  as  of  1  January 
2014.  

The  retention,  by  way  of  collection  costs,  of  25%  of  the  amounts  collected  by  the 
Member  States  for  traditional  own  resources  constitutes  a  hidden  correction 
mechanism.  In  view  of  the  proposal  to  incorporate  the  correction  mechanisms  into 
lump sums, the retention should be restricted to 10%, in line with the system in place 
until 2000.  

In  order  to  ensure  strict  budgetary  discipline,  and  taking  into  account  the 
Commission  Communication  of  16  April  2010  on  the  adaptation  of  the  ceiling  of 
own  resources  and  of  the  ceiling  for  appropriations  for  commitments  following  the 
decision to apply FISIM for own resources purposes15, the ceiling of own resources 
should be equal to 1.23 % of the sum of the Member States' GNIs at market prices 
for appropriations for payments and the ceiling of 1.29 % of the sum of the Member 
States' GNIs should be set for appropriations for commitments. In order to maintain 
unchanged  the  amount  of  financial  resources  put  at  the  disposal  of  the  Union,  it  is 
appropriate  to  adapt  these  ceilings  expressed  in  percentages  of  GNI  where 
amendments to Regulation of the European Parliament and of the Council of […] on 
the  European  system  of  national  and  regional  accounts  in  the  European  Union16 
entail a significant change in the level of GNI. Such an adaptation should be made 
under the procedure set out under the fourth paragraph of Article 311 of the Treaty.  

(16) 

In  order  to  implement  this  Decision,  it  is  necessary  to  provide  for  the  adoption  of 
specific  implementing  measures.  Accordingly,  provisions  of  a  general  nature, 
applicable  to  all  types  of  own  resources  and  for  which  appropriate  parliamentary 

15 
16 

COM(2010)162 final. 
OJ … 

EN 

14 

   EN 

 
                                                 
(17) 

oversight  is  particularly  important  should  be  included  in  a  separate  implementing 
regulation. This means in particular the procedure for calculating and budgeting the 
annual  budgetary  balance  and  aspects  of  control  and  supervision  of  revenues.  That 
regulation should also include the tax rates and the rates of call for each of the own 
resources  established  in  the  Decision  and  technical  issues  related  to  GNI,  to  allow 
limited flexibility within the limits set out in this Decision. 

For  reasons  of  coherence,  continuity  and  legal  certainty,  provisions  must  be  laid 
down to cover the changeover from the system introduced by Decision 2007/436/EC, 
Euratom  of  7  June  2007  on  the  system  of  the  European  Communities’  own 
resources17 to that arising from this Decision. Accordingly, following the ending of 
the  VAT-based  own  resource,  Decision  2007/436/EC,  Euratom  should  continue  to 
apply for the calculation and adjustment of revenue accruing from the application of 
a  rate  of  call  to  the  VAT  base,  the  procedures  for  making  it  available  and  the 
arrangements  for  inspection,  depending  on  the  relevant  years.  In  addition,  the 
calculation of the correction of budgetary imbalances granted to the United Kingdom 
for  the  years  until  2012  should  be  treated  in  accordance  with  the  provisions  laid 
down  in  Decision  2007/436/EC,  Euratom.  The  correction  granted  to  the  United 
Kingdom for 2013, to be budgeted in 2014, should be replaced by a lump sum gross 
reduction in 2014.  

(18) 

Decision 2007/436/EC, Euratom should be repealed.  

(19) 

(20) 

For the purposes of this Decision, all monetary amounts should be expressed in euros 
and in current prices. 

In order to ensure transition to the new system of own resources and to coincide with 
the financial year this Decision should apply from 1 January 2014, 

HAS ADOPTED THIS DECISION: 

Article 1  

Subject matter 

This  Decision  lays  down  rules  on  the  allocation  of  own  resources  of  the  Union  in  order  to 
ensure the financing of the Union's annual budget. 

Article 2  

Categories of own resources 

1.  Revenue  from  the  following  shall  constitute  own  resources  entered  in  the  budget  of  the 
Union: 

17 

OJ L 163, 23.6.2007, p. 17 

EN 

15 

   EN 

 
                                                 
(a)  traditional  own  resources  consisting  of  levies,  premiums,  additional  or  compensatory 
amounts,  additional  amounts  or  factors,  Common  Customs  Tariff  duties  and  other  duties 
established or to be established by the institutions of the Union in respect of trade with non-
member  countries,  customs  duties  on  products  under  the  expired  Treaty  establishing  the 
European  Coal  and  Steel  Community  as  well  as  contributions  and  other  duties  provided  for 
within the framework of the common organisation of the markets in sugar;  

(b) a financial transaction tax in accordance with [legislative act] (EU) No […/…], with the 
applicable tax rates not exceeding …%. 

(c)  a  share  of  the  Value  Added  Tax  (VAT)  on  supplies  of  goods  and  services,  intra-
Community acquisitions of goods and importation of goods subject to a standard rate of VAT 
in every Member State pursuant to Council Directive 2006/112/EC18, with the rate applicable 
in  accordance  with  Regulation  (EU)  No  …/…  not  exceeding  two  percentage  points  of  the 
standard rate. 

(d) the application of a uniform rate, to be determined pursuant to the budgetary procedure in 
the light of the total of all other revenue, to the sum of Gross National Income (GNI) of all the 
Member States. 

2.  Revenue  deriving  from  any  new  charges  introduced  within  the  framework  of  a  common 
policy, in accordance with the Treaty, provided that the procedure laid down in Article 311 of 
the Treaty has been followed, shall also constitute own resources entered in the budget of the 
Union. 

3. Member States shall retain, by way of collection costs, 10% of the amounts referred to in 
point (a) of paragraph 1. 

4. If, at the beginning of the financial year, the budget has not been adopted, the previous GNI 
rates of call shall remain applicable until the entry into force of the new rates. 

Article 3  

Own resources ceiling 

1. The total amount of own resources allocated to the Union to cover annual appropriations 
for payments shall not exceed 1.23 % of the sum of all the Member States' GNIs. 

2. The total annual amount of appropriations for commitments entered in the Union's budget 
shall not exceed 1.29 % of the sum of all the Member States' GNIs. 

An  orderly  ratio  between  appropriations  for  commitments  and  appropriations  for  payments 
shall  be  maintained  to  guarantee  their  compatibility  and  to  enable  the  ceiling  pursuant  to 
paragraph 1 to be respected in subsequent years. 

18 

OJ L 347, 11.12.2006, p. 1. 

EN 

16 

   EN 

 
                                                 
Article 4  

Correction mechanisms 

1. The uniform rate fixed under Article 2(1)(d) shall apply to the GNI of each Member State. 

2.  For  the  period  of  2014–2020,  a  gross  reduction  in  annual  GNI  contributions  shall  be 
granted to the following Member States: 

– 

– 

– 

– 

EUR 2500 million for Germany, 

EUR 1050 million for the Netherlands, 

EUR 350 million for Sweden, 

EUR 3600 million for the United-Kingdom. 

Article 5  

Financing the correction mechanisms 

The  cost  of  the  corrections  set  out  in  Article  4  shall  be  borne  by  the  Member  States  in 
proportion to each Member State's share of the payments referred to in Article 2(1)(d). 

Article 6  

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. 

Article 7 

Surplus carry-over 

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 8  

Collecting own resources and making them available or paying them to the Commission  

1. The Union's own resources referred to in Article 2(1)(a) and, from 1 January 2018 at the 
latest,  those  referred  to  in  Article  2(1)(c),  shall  be  collected  by  the  Member  States  in 

EN 

17 

   EN 

 
accordance with the national provisions imposed by law, regulation or administrative action, 
which shall, where appropriate, be adapted to meet 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  to 
ensure that they comply with Union rules and report, if necessary, to the budgetary authority. 

2. The Union's own resources referred to in Article 2(1)(b) shall be collected from 1 January 
2018  at  the  latest  in  accordance  with  the  relevant  Union  legislation  supplemented,  where 
necessary,  by  the  national  provisions  imposed  by  law,  regulation  or  administrative  action. 
These  national  provisions  shall,  where  appropriate,  be  adapted  to  meet  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  to 
ensure that they comply with Union rules and report, if necessary, to the budgetary authority. 

3.  Member  States  shall  make  the  resources  provided  for  in  Article  2(1)(a),  (c)  and  (d) 
available to the Commission, in accordance with the regulation adopted under Article 322(2) 
of the Treaty. 

The  resources  provided  for  in  Article  2(1)(b)  shall  be  made  available  or  paid  to  the 
Commission in accordance with the regulation adopted under Article 322(2) of the Treaty.  

Article 9 

Implementing measures 

The  Council  shall,  in  accordance  with  the  procedure  set  out  in  the  fourth  paragraph  of 
Article 311 of the Treaty, lay down implementing measures as regards the following elements 
of the own resources system: 

(a) the tax rates of the own resources established under Articles 2(1)(b) and (c) and the rate of 
call of the own resource established under Article 2(1)(d); 

(b)  the  reference  GNI,  the  provisions  to  adjust  GNI  and  the  provisions  to  recalculate  the 
ceilings  for  payments  and  commitments  in  case  of  significant  changes  to  GNI,  for  the 
purposes of applying Articles 2(1)(d) and 3; 

(c)  the  procedure  for  calculating  and  budgeting  the  annual  budgetary  balance  as  set  out  in 
Article 7; 

(d)  the  provisions  and  arrangements  necessary  for  controlling  and  supervising  the  revenue 
referred to in Article 2, including any supplementary reporting requirements. 

EN 

18 

   EN 

 
Article 10 

Final and transitional provisions 

1. Subject to paragraph 2, Decision 2007/436/EC, Euratom is repealed. Any references to the 
Council  Decision  of  21  April  1970  on  the  replacement  of  financial  contributions  from 
Member  States  by  the  Communities'  own  resources19,  to  Council  Decision  85/257/EEC, 
Euratom of 7 May 1985 on the Communities' system of own resources20, to Council Decision 
88/376/EEC, Euratom of 24 June 1988 on the system of the Communities' own resources21, to 
Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' 
own  resources22,  to  Council  Decision  2000/597/EC,  Euratom  of  29  September  2000  on  the 
system of the  Communities'  own resources23 or to Decision  2007/436/EC, Euratom shall be 
construed as references to this Decision and shall be read in accordance with the correlation 
table set out in the Annex to this Decision. 

2.  Articles  2,  4,  5  and  8(2)  of  Decisions  94/728/EC,  Euratom,  2000/597/EC,  Euratom  and 
2007/436/EC,  Euratom  shall  continue  to  apply  to  the  calculation  and  adjustment  of  revenue 
accruing  from  the  application  of  a  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, the 
procedures  for  making  it  available  and  the  arrangements  for  inspection,  depending  on  the 
relevant year, and to the calculation of the correction of budgetary imbalances granted to the 
United Kingdom for the years until 2012.  

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

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

4. For the purposes of this Decision, all monetary amounts shall be expressed in euros and in 
current prices. 

Article 11  

Entry into force 

Member States shall be notified of this Decision by the Secretary-General of the Council.  

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. 

19 
20 
21 
22 
23 

OJ L 94, 28.4.1970, p. 19. 
OJ L 128, 14.5.1985, p. 15. 
OJ L 185, 15.7.1988, p. 24. 
OJ L 293, 12.11.1994, p. 9. 
OJ L 253, 7.10.2000, p. 42. 

EN 

19 

   EN 

 
                                                 
This Decision shall enter into force on the first day of the month following receipt of the last 
of the notifications referred to in the second paragraph.  

It shall apply from 1 January 2014. 

Article 12  

Publication 

This Decision shall be published in the Official Journal of the European Union. 

Done at Brussels,  

For the Council 
The President 

EN 

20 

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ANNEX 

Correlation table 

Decision 2007/436/EC 

This Decision 

Article 1 
Article 2(1)(a) 
Article 2(1)(b) 
Article 2(1)(c) 
Article 2(2) 
Article 2(3) 
Article 2(4) 
Article 2(5) 
Article 2(6) 
Article 2(7) 
Article 3(1) 
Article 3(2) 
Article 3(3) 
Article 4 
Article 5(1) 
Article 5(2) 
Article 5(3) 
Article 5(4) 
Article 6 
Article 7 
Article 8(1) 
Article 8(2) 
Article 9 
Article 10(1) 
Article 10(2) 
Article 10(3) 
Article 11 
Article 12 

Article 1 
Article 2(1)(a) 
- 
Article 2(1)(c) 
Article 2(2) 
Article 2(3) 
- 
Article 4(1) 
Article 2(4) 

Article 3(1) 
Article 3(2) 
- 
- 
Article 5(1) 
- 
- 
- 
Article 6 
Article 7 
Article 8 
- 
- 
Article 10(1) 
Article 10(2) 
Article 10(3) 
Article 11 
Article 12 

EN 

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