Amended proposal for a COUNCIL DECISION on the system of own resources of the European Union
Date: 2011-11-09
Institutions: European Commission
Subjects: VAT resource, financial transaction, tax, tax reform

EUROPEAN COMMISSION 

Brussels, 9.11.2011 
COM(2011) 739 final 

2011/0183 (CNS) 

Amended proposal for a 

COUNCIL DECISION 

on the system of own resources of the European Union 

(//EC, Euratom) 

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EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

On 29 June 2011 the Commission proposed replacing the current system of financing for the 
EU budget with  a new  system making full use of the possibilities introduced by the Lisbon 
Treaty1.  

The proposals included three main elements complementing each other: the simplification of 
Member  States'  contributions,  the  introduction  of  new  own  resources  and  the  reform  of 
correction mechanisms.  

It  also  announced  that  it  would  present  the  relevant  detailed  regulations  or  amendments  to 
existing legal acts as well as the related regulations pursuant to Article 322(2) TFEU by the 
end of 2011.  

Accordingly, this amended proposal for a Council Decision on the system of own resources of 
the European Union refines and completes the proposal made on 29 June2.  

It ensures coherence with the  proposed Council Directive on  a common system of  financial 
transaction  tax  (hereinafter  "the  FTT  Directive")3  adopted  on  28  September  2011,  the 
proposals for Council Regulations on making the own resource based on the FTT available to 
the  EU  budget4  and  on  calculating  and  making  available  the  own  resource  based  on  value 
added tax (VAT)5 as well as the amended proposal for a Council Regulation implementing the 
own resources Decision6 adopted together with this proposal.  

2. 

CONTENT OF THE REVISED PROPOSAL 

The following sections present the main amendments and proposed additions in relation to the 
organization of the own resources system. The proposals only bear on aspects dealing with the 
two  new  own  resources  based,  respectively,  on  the  financial  transaction  tax  and  the  value 
added tax. Other issues, such as corrections, are not affected by these proposals. 

2.1.  The legal instruments 

The legal form of the financial transaction tax is defined in the FTT Directive. The Directive 
proposes all the practical elements necessary to create and implement the FTT. Logically, the 

1 
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3 

4 

5 

6 

See COM(2011)510, COM(2011)511, COM(2011)512 and SEC(2011)876 of 29 June 2011. 
Additions  to  the  original  proposal  are  highlighted  in  bold  and  are  underlined.  Provisions  to  be 
eliminated are identified using strikethrough. 
Proposal  for  a  Council  Directive  on  a  common  system  of  financial  transaction  tax  and  amending 
Directive 2008/7/EC, COM(2011)594 of 28.9.2011. 
Proposal for a Council Regulation on the methods and procedure for making available the own resource 
based on the financial transaction tax, COM(2011)738 of 9.11.2011.  
Proposal for a Council Regulation on the methods and procedure for making available the own resource 
based on the value added tax, COM(2011)737 of 9.11.2011. 
Amended proposal for a Council Regulation laying down implementing measures for the system of own 
resources of the European Union, COM(2011)740 of 9.11.2011. 

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function of the FTT as an own resource  can  only be envisaged together with  the successful 
implementation of the FTT.  

In order to ensure that receipts generated by the FTT can be used effectively to finance a part 
of the EU budget, rules need to be defined in the context of the own resources legislation. In 
practice,  three  legal  acts  enter  into  play:  (i)  the  own  resources  Decision  (ORD),  which 
contains  the  main  provisions  on  own  resources  such  as  the  list  of  own  resources  and  the 
timing  for  their  implementation;  (ii)  the  Regulation  implementing  the  ORD,  which  notably 
contains  rules  on  control  and  supervision  for  the  collection  of  own  resources;  (iii)  a 
Regulation on making the FTT-based own resource available to the EU budget. Whereas the 
first  two  legal  acts  have  already  been  proposed  by  the  Commission  and  merely  need 
refinements  to  ensure  full  coherence  with  the  FTT  Directive,  the  proposal  for  a  Council 
Regulation on making the FTT-based own resource available to the EU budget is a new piece 
of legislation.  

In  addition,  the  Commission  also  proposes  a  new  legislation  on  the  calculation  and  the 
making  available  of  the  new  own  resource  based  on  VAT.  This  completes  the  provisions 
already  included  in  the  ORD  and  in  the  Regulation  implementing  it,  which  are  slightly 
adjusted to ensure consistency with the proposals related to the FTT-based own resource.  

2.2. 

Proposed changes in the ORD 

The proposal made on 29 June 2011 includes the list of new own resources, together with the 
timing for their introduction and relevant limits to their application. It contains in particular a 
maximum  limit  to  the  rates  applicable  to  the  new  own  resources,  whereas  the  proposed 
implementing regulation pursuant to Article 311(4) presents actual rates to be applied.  

This amended proposal simplifies greatly the way the FTT-based own resource is determined 
by referring to the rates defined in the FTT Directive for the purpose of determining the FTT-
based  own  resource.  Possible  adjustments  to  the  rates  would  be  made  only  in  the  FTT 
Directive. This ensures full coherence between the FTT Directive and the rules set out for the 
own resources system.  

In line with the FTT Directive, it is now proposed to use the FTT as an own resource as of 1 
January 2014. This means that from the start of its implementation the FTT will partly be used 
as an own resource.  

Minor changes are also brought to provisions regarding the new VAT own resource, in order 
to ensure full consistency with the provisions set out in the amended proposal for a Regulation 
on the implementation of the the ORD and the new proposal on the making available of this 
resource. For consistency, the timing for the introduction of the new VAT resource is aligned 
to that of the FTT. 

Last,  changes  are  brought  to  provisions  relating  to  the  administration  and  collection  of  the 
own resource to ensure coherence with the other parts of the legislation. 

2.3. 

Proposed changes in the regulation implementing the ORD 

The 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 

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resource Decision, with the exception of those aspects of the own resources system that relate 
to making own resources available and to meeting cash requirements. 

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 
regulation. This means in particular aspects of control and supervision of revenues. 

Three main changes are included in the amended proposal.  

Explicit  reference  to  the  various  types  of  financial  transactions  to  which  the  rates  would  be 
applied  is  redundant  with  provisions  laid  down  in  the  FTT  Directive  and  the  amended 
proposal for the ORD. It is now proposed to specify the share of the minimum rates defined in 
the  FTT  Directive  that  should  be  used  for  the  purpose  of  the  FTT-based  own  resource. 
Consequently, this share of the receipts resulting from the application of the minimum rates 
defined  in  the  FTT  Directive  will  accrue  to  the  EU  budget  and  the  rest  will  accrue  to  the 
Member States budgets.  

The original proposal envisaged the possibility that the FTT would be collected by economic 
operators  rather  than  by  the  Member  States.  In  line  with  the  FTT  Directive,  the  Member 
States  administrations  will  be  responsible  for  collecting  the  FTT.  Therefore,  reference  to 
economic operators is no longer necessary. 

Last,  regarding  the  new  VAT  own  resource,  the  text  now  refers  explictly  to  the  calculation 
method  (set  out  in  the  proposal  on  the  making  available  of  the  new  VAT  resource)  which 
determines the basis on which to apply the call rate of the resource. 

2.4.  Making  the  FTT-based  and  the  VAT-based  own  resources  available  to  the  EU 
budget 

As a complement to the own resources Decision and the regulation pursuant to Article 311(4) 
TFEU, a new proposal for a Council Regulation pursuant to Article 322(2) TFEU comprises 
the  elements  concerning  the  methods  and  procedures  for  making  the  FTT-based  own 
resources available to the EU budget.  

In addition, a new proposal for a Council Regulation includes the arrangements on calculating 
and making available to the EU budget the own resource based on value added tax (VAT). 

These proposals include the rules on the establishment of the two own resources, treasury and 
accounting arrangements, entry in the accounts and corrections, reporting and conservation of 
supporting  documents.  Moreover,  regarding  specifically  the  new  VAT  resource,  detailed 
provisions on the calculation method are included. 

Both  proposals  draw  heavily  on  experience  accumulated  in  dealing  with  traditional  own 
resources  (customs  duties)  and  with  the  current  VAT-based  own  resource.  They  aim  to 
provide simple and transparent rules with a maximum predictability for the Member States. 

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2011/0183 (CNS) 

Amended 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 Parliament7, 

Having regard to the opinion of the Court of Auditors8, 

Having regard to the opinion of the European Economic and Social Committee9, 

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. 

7 
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9 

Opinion delivered on XX.6.2011 
OJ C  
OJ C  

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

In  the  communication  of  19  October  2010  on  the  EU  Budget  Review10  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  a 
new own resources – a resource based on thea financial transaction tax and a new 
VAT own 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  arising  from  thea  financial 
transaction tax and a new VAT own resource should be set out in this Decision. The 
legal framework of the underlying taxes is defined in separate legal acts.  

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. 

10 

COM(2010)700 of 19.10.2010. 

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(11) 

(12) 

(13) 

(14) 

(15) 

Any  correction  mechanism  should  be  closely  related  to  the  expenditure  policy 
enshrined in the multiannual financial framework provided for in Article 312 of the 
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 purposes11, 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  Union12 
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.  

11 
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COM(2010)162 final. 
OJ … 

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(16) 

(17) 

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 
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 
Rregulation  should  also  include,  where  relevant,  the  precise  share  in  certain 
harmonised taxes to be used as own resources, the tax rates and the rates of call 
for each of the other own resources established in thise 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 
resources13 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. 

13 

OJ L 163, 23.6.2007, p. 17 

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Article 2  

Categories of own resources 

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

(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)  the  financial  transaction  tax  to  be  levied  pursuant  to  in  accordance  with  Council 
Directive [legislative act] (EU) No […/…]14, with the applicable tax rates in the amount of a 
share  not  exceeding  the  minimum  rates  set  out  in  Article  8(3)  of  that  Directivenot 
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  to  be  levied  pursuant  to  Council  Directive  2006/112/EC15,  with  the 
rate applicable in accordance with Regulation (EU) No …/… in the amount of a share not 
exceeding  2%  of  the  net  value  of  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  determined  according  to  Union  rulestwo  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. 

14 
15 

OJ L […], […], p. 1. 
OJ L 347, 11.12.2006, p. 1. 

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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. 

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. 

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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), (b) and , from 1 January 2018 at 
the  latest,  those  referred  to  in  Article  2(1)  (c),  shall  be  collected  by  the  Member  States  in 
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. 

3.2. Member States shall make the resources provided for in Article 2(1)(a), (b), (c) and (d) 
available to the Commission, in accordance with regulations 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  share  in  the  taxes  referred  to  in  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); 

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(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. 

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  resources16,  to  Council  Decision  85/257/EEC, 
Euratom of 7 May 1985 on the Communities' system of own resources17, to Council Decision 
88/376/EEC, Euratom of 24 June 1988 on the system of the Communities' own resources18, to 
Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' 
own  resources19,  to  Council  Decision  2000/597/EC,  Euratom  of  29  September  2000  on  the 
system of the  Communities'  own resources20 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. 

16 
17 
18 
19 
20 

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 

12 

   EN 

 
                                                 
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. 

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 

13 

   EN 

 
 
 
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 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 

14 

   EN