CELEX: 51993PC0438
Language: en
Date: 1993-09-14
Title: Proposal for a COUNCIL DECISION on the system of the Communities' own resources

6 . 11 . 93                                Official Journal of the European Communities                               No C 300 / 17
                                                                   II
                                                           (Preparatory Acts)
                                                      COMMISSION
                        Proposal for a Council Decision on the system of the Communities' own resources
                                                             (93 /C 300 / 18 )
                                                          COM(93) 438 final
                                          (Submitted by the Commission on 11 October 1993)
                        ORIGINAL PROPOSAL                                                      AMENDED PROPOSAL
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                               THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European                   Having regard to the Treaty establishing the European
Economic Community, and in particular Articles 199 and                  Economic Community, and in particular Articles 199 and
201 thereof,                                                            201 thereof,
Having regard to the Treaty establishing the European                  Having regard to the Treaty establishing the European
Atomic Energy Community, and in particular Articles                    Atomic Energy Community, and in particular Articles
 171 ( 1 ) and 173 thereof,                                             171 ( 1 ) and 173 thereof,
Having regard to the proposal from the Commission (*),                 Having regard to the proposal from the Commission ('),
Having regard to the opinion of the European                           Having regard to the opinion of the European
Parliament (2),                                                        Parliament (2),
Having regard to the opinion of the Economic and                       Having regard to the opinion of the Economic and
Social Committee (3),                                                  Social Committee (3),
[Whereas Council Decision 85/257/EEC, Euratoin of                      Whereas Council Decision 88 / 376 /EEC, Euratom of 24
7 May 1985 on the Communities' system of own                           June 1988 on the system of the Communities' own
resources (1), as last amended by the Single European                  resources (4) expanded and amended the composition of
Act, raised to 1,4 % the limit for each Member State on                own resources by capping the VAT resources base at
the rate applied to the uniform value-added tax (VAT)                  55 % of gross national product for the year at market
base previously set at 1 % by the Council Decision of 21               prices (hereinafter 'GNP'), with the maximum call-in
April 1970 on the replacement of financial contributions               rate being maintained at 1,4 % , and by introducing an
from Member States by the Communities' own                             additional resource, based on the total GNP of Member
resources (5), hereinafter referred to as 'the Decision of             States, designed to guarantee budgetary balance between
21 April 1970';]                                                       revenue and expenditure ;
(') OJ No C 102 , 16 . 4 . 1988 , p. 8 .                               (») OJ No C 102 , 16 . 4 . 1988 , p. 8 .
(2) Opinion delivered on 15 June 1988 (not yet published in the        (2) Opinion delivered on 15 June 1988 (not yet published in the
     Official Journal).                                                     Official Journal).
O OJ No C 175 , 4 . 7 . 1988 .                                         O OJ No C 175 , 4 . 7 . 1988 .
(4) OJ No L 128 , 14 . 5 . 1985 , p. 15 .                              (4) OJ No L 185 , 15 . 7. 1988 , p. 24 .
(5) OJ No L 94, 28 . 4 . 1970 , p. 19 .
 ---pagebreak--- No C 300/ 18                          Official Journal of the European Communities                               6. 11 . 93
                   ORIGINAL PROPOSAL                                               AMENDED PROPOSAL
[Whereas the resources available within the limit of            Whereas this system has produced a sounder basis for
 1,4 % are no longer sufficient to cover the estimates of       financing the Community; whereas, however, the
Community expenditure ;]                                        structure of the system should make more allowance for
                                                                each Member State's ability to contribute by correcting
                                                                the degressive aspects of the system for the least pros­
[Whereas the Single European Act opens up new, possi­           perous Member States ;
bilities to the Community; whereas Article 8a of the
Treaty establishing the European Economic Community
provides for the completion of the internal market by 31
December 1992 ;]
[Whereas the Community must possess stable and                  Whereas the Community must have adequate resources
guaranteed revenue enabling it to stabilize the present         to finance its policies ; whereas its revenue must match
situation and operate the common policies ; whereas this        the expenditure judged necessary for those policies, for
revenue must be based on the expenditure deemed                 which the priorities were set in the financial perspective
necessary to this end which was determined in the               contained in the interinstitutional Agreement between
financial estimates in the interinstitutional Agreement         the European Parliament, the Council and the
between the European Parliament, the Council and the            Commission, which will take effect on 1 January 1995 ;
Commission, which will take effect on 1 July 1988 ;]
Whereas the European Council meeting [in Brussels on            Whereas the European Council meeting in Edinburgh on
 11 , 12 and 13 February 1988 ] reached certain                  11 and 12 December 1992 reached certain conclusions ;
conclusions ;
Whereas, in accordance with these conclusions, the              Whereas, in accordance with these conclusions, the
Community will, by [ 1992], be assigned a maximum               Community will, by 1999, be assigned a maximum
amount of own resources corresponding to [ 1,2 %] of            amount of own resources corresponding to 1,27 % of
the total of the Member States' gross national product          the total of the Member States' GNP ;
for the year at market prices, hereinafter referred to as
'GNP';
Whereas observance of this ceiling requires that the total      Whereas observance of this ceiling requires that the total
amount of own resources at the Community's disposal             amount of own resources at the Community's disposal
for the period [ 1988 to 1992] does not in any one year         for the period 1995 to 1999 does not in any one year
exceed a specified percentage of the sum of the                 exceed a specified percentage of the sum of the
Community's GNP for the year in question ; whereas              Community's GNP for the year in question ; whereas
that percentage [shall correspond to application of the         that percentage has been set by reference to the expen­
guidelines established for growth in Community expen­           diture ceilings agreed by the Community institutions ;
diture as laid down in the European Council conclusions
concerning      budgetary    discipline     and     budget
management, and a safety margin of 0,03 % of
Community GNP aimed at coping with unforeseen
expenditure ;]
Whereas a global ceiling of [ 1,30 %] of the Member             Whereas an overall ceiling of 1,335 % of the Member
States' GNP is set for commitment appropriations ;              States' GNP is set for commitment appropriations ;
whereas an orderly progression of commitment appropri­          whereas an orderly progression of commitment appropri­
ations and payment appropriations must be ensured ;             ations and payment appropriations must be ensured ;
Whereas these ceilings should remain applicable until this      Whereas these ceilings should remain applicable until this
Decision is amended ;                                           Decision is amended ;
 ---pagebreak---  6 . 11 . 93                           Official Journal of the European Communities                          No C 300 / 19
                     ORIGINAL PROPOSAL                                              AMENDED PROPOSAL
Whereas, with a view to matching the resources paid by           Whereas, with a view to matching the resources paid by
 each Member State more closely with its ability to               each Member State more closely with its ability to
 contribute, [the composition of Community own                    contribute, the European Council of 11 and 12
 resources should be amended and enlarged ; whereas it is         December 1992 decided to amend the composition of
 necessary for this purpose :                                     Community own resources :
— to fix at 1,4 % the maximum rate to be applied to              — by lowering the ceiling for the uniform rate to be
      each Member State's uniform base for value added               applied to the uniform value added tax base of each
      tax, limited where appropriate to 55 % of its GNP,             Member State from 1,4 % to 1,0 % in equal steps
                                                                     between 1995 and 1999,
— to introduce an additional type of own resource to             — if necessary, by capping at 50 % of GNP from 1995
      balance budget revenue and expenditure, based on               onwards the value added tax base of the Member
      the sum of Member States' GNP; for this purpose,               States whose per capita GNP is less than 90 % of the
      the Council will adopt a Directive on the harmon­              Community average and by reducing the capping of
      ization of the compilation of gross national product           the base from 55 to 50 % in equal steps over the
      at market prices ;                                             period 1995 to 1999 for the other Member States ;
[Whereas the customs duties on products coming under             Whereas the European Council of 11 and 12 December
the Treaty establishing the European Coal and Steel              confirmed    the  formula  for the   calculation   of the
Community should be included in Community own                    correction of budgetary imbalances defined in Decision
resources ;1                                                     88 /376/EEC, Euratom ;
[Whereas the conclusions of the European Council of 25           Whereas, by virtue of Article 127 of the 1979 Act of
and 26 June 1984 on the correction of budgetary                  Accession and Articles 187 and 374 of the 1985 Act of
imbalances continue to apply for the duration of this            Accession, Greece until 1985 and Spain and Portugal
Decision's validity; whereas the present compensation            until 1991 were refunded a proportion of their payments
mechanism must, however, be adjusted to take account             of VAT own resources, the GNP-based resource and
of the capping of the VAT base and the introduction of           GNP-based financial contributions ; whereas these
an additional resource and must provide for financing of         refunds constituted expenditure from the general budget;
the correction on the basis of a GNP key; whereas this
adjustment should ensure that the VAT share of the
United Kingdom is replaced by its share of payments              Whereas any adjustments of VAT and GNP bases for
under the third and fourth resources (those provided by          the years from 1981 to 1991 will entail corrections of the
VAT and GNP respectively) and that the effect on the             amounts of the refunds ; whereas arrangements should be
United Kingdom, in respect of a given year, of the               made to take account of such adjustments in the general
capping of the VAT base and of the introduction of the           budget;
fourth resource which is not compensated by this change
will be offset by an adjustment to the compensation in
respect of that year; whereas the contributions of Spain
and Portugal should be reduced in accordance with the
rebates provided for in Articles 187 and 374 of the 1985
Act of Accession ;]
 ---pagebreak--- No C 300 /20                        Official Journal of the European Communities                                6 . 11 . 93
                   ORIGINAL PROPOSAL                                              AMENDED PROPOSAL
Whereas the budgetary imbalances should be corrected          Whereas the budgetary imbalances should be corrected
in such a way as not to affect the own resources              in such a way as not to affect the own resources
available for the Community's policies ;                      available for the Community's policies ;
Whereas [the conclusions of the European Council of           Whereas the monetary reserve, hereinafter referred to as
 11 , 12 and 13 February 1988 provided for the creation,      the 'EAGGF monetary reserve', is covered by specific
in the Community budget], of a monetary reserve, here­        provisions ;
inafter referred to as the 'EAGGF monetary reserve', to
offset the impact of significant and unforeseen fluctu­
ations in the ECU/dollar parity on the expenditure            Whereas the conclusions of the European Council of 11
under the Guarantee Section of the European Agri­             and 12 December 1992 provided for the creation in the
cultural Guidance and Guarantee Fund (EAGGF);                 Community budget of two reserves, one designed to
whereas that reserve [should be] covered by specific          respond rapidly to emergency aid requirements in
provisions ;                                                  non-member countries, the other to finance a loan
                                                              guarantee fund ; whereas those reserves should be
                                                              covered by specific provisions ;
                                                              Whereas the European Council of Copenhagen of 22
                                                              and 23 June 1993 underlined the importance of
                                                              continuing to combat fraud and irregularities in
                                                              connection with the Community budget ; whereas more
                                                              detailed provisions should be laid down concerning the
                                                              Commission's role in improving national VAT regis­
                                                              tration, calculation , recovery and control procedures ;
                                                              Whereas the European Council has asked the
                                                              Commission to carry out a study on the possibility of
                                                              creating a fifth resource ;
Whereas provisions must be laid down to cover the             Whereas provisions must be laid down to cover the
changeover from the system introduced by Decision             changeover from the system introduced by Decision
[85 /257 /EEC, Euratom] to that arising from this             88 / 376/EEC, Euratom to that arising from this
Decision ;                                                    Decision ;
Whereas the European Council of 11 , 12 and 1 3               Whereas the European Council of 11 and 12 December
February 1988 provided that this Decision should take         1992 provided that this Decision should take effect on
effect on 1 January 1988 ,                                    1 January 1995 ,
HAS LAID DOWN THESE PROVISIONS , WHICH IT                     HAS LAID DOWN THESE PROVISIONS , WHICH IT
RECOMMENDS         TO    THE    MEMBER    STATES    FOR       RECOMMENDS          TO    THE     MEMBER    STATES     FOR
ADOPTION :                                                    ADOPTION :
                         Article 1                                                       Article 1
The Communities shall be allocated resources of their         The Communities shall be allocated resources of their
own in accordance with the following Articles in order        own in accordance with the following Articles in order
to ensure the financing of their budget.                      to ensure the financing of their budget.
The budget of the Communities shall, irrespective of          The budget of the Communities shall, irrespective of
other revenue, be financed entirely from the                  other revenue, be financed entirely from the
Communities ' own resources .                                 Communities' own resources .
 ---pagebreak--- 6. 11 . 93                            Official Journal of the European Communities                            No C 300/21
                   ORIGINAL PROPOSAL                                                AMENDED PROPOSAL
                         Article 2                                                        Article 2
1 . Revenue from the following shall constitute own              1 . Revenue from the following shall constitute own
resources entered in the budget of the Communities :            resources entered in the budget of the Communities :
(a) levies,   premiums,    additional   or   compensatory       (a) levies,    premiums,    additional   or  compensatory
    amounts, additional amounts or factors and other                 amounts, additional amounts or factors and other
    duties established or to be established by the                   duties established or to be established by tljie
    institutions of the Communities in respect of trade              institutions of the Communities in respect of trade
    with non-member countries within the framework of                with non-member countries within the framework of
    the common agricultural policy, and also contri­                 the common agricultural policy, and also contri­
    butions and other duties provided for within the                 butions and other duties provided for within the
    framework of the common organization of the                      framework of the common organization of the
    markets in sugar;                                                markets in sugar;
(b) Common Customs Tariff duties and other duties               (b) Common Customs Tariff duties and other duties
    established or to be established by the institutions of          established or to be established by the institutions of
    the Communities in respect of trade with                         the Communities in respect of trade with
    non-member      countries   and   customs   duties   on          non-member      countries  and    customs  duties    on
    products coming under the Treaty establishing the                products coming under the Treaty establishing the
    European Coal and Steel Community;                               European Coal and Steel Community;
(c) the application of a uniform rate valid for all             (c) the application of a uniform rate valid for all
    Member States to the VAT assessment base which is                Member States to the VAT assessment base which is
    determined in a uniform manner for Member States                 determined in a uniform manner for Member States
    according to Community rules ; however, the                      according to Community rules ; however, the
    assessment base [for any Member States to be taken               assessment base to be taken into account for the
    into account for the purposes of this Decision shall             purpose of this Decision shall not exceed 50 % of
    not exceed 55 % of its GNP;1                                     GNP in the case of Member States whose GNP in
                                                                     less than 90 % of the Community average ; for
                                                                     Member States not fulfilling this condition the
                                                                     assessment base to be taken into account shall not
                                                                     exceed :
                                                                     — 54 % of their GNP in 1995,
                                                                     — 53 % of their GNP in 1996,
                                                                     — 52 % of their GNP in 1997,
                                                                     — 51 % of their GNP in 1998 ,
                                                                     — 50 % of their GNP in 1999 ;
(d) the application of a rate — to be determined under          (d) the application of a rate — to be determined under
    the budgetary procedure in the light of the total of             the budgetary procedure in the light of the total of
    all other revenue — to the sum of all the Member                 all other revenue — to the sum of all the Member
    States' GNP established in accordance with                       States' GNP established in accordance with the
    Community rules [to be laid down in a Directive                  Community rules laid down in Council Directive
    adopted under Article 8 (2) of this Decision].                   89/ 130/EEC, Euratom (').
                                                                o OJ No L 49, 21 . 2. 1989, p. 26.
 ---pagebreak--- No C 300 / 22                           Official Journal of the European Communities                                    6 . 11 . 93
                     ORIGINAL PROPOSAL                                                 AMENDED PROPOSAL
2 . Revenue deriving from any new charges introduced              2 . Revenue deriving from any new charges introduced
within the framework of a common policy, in                       within the framework of a common policy, in
accordance with the Treaty establishing the European              accordance with the Treaty establishing the European
Economic Community or the Treaty establishing the                 Economic Community or the Treaty establishing the
European Atomic Energy Community, provided the                    European Atomic Energy Community, provided the
procedure laid down in Article 201 of the Treaty estab­           procedure laid down in Article 201 of the Treaty estab­
lishing the European Economic Community or in Article             lishing the European Economic Community or in Article
173 of the Treaty establishing the European Atomic                 173 of the Treaty establishing the European Atomic
Energy Community has been followed, shall also                    Energy Community has been followed, shall also
constitute own resources entered in the budget of the             constitute own resources entered in the budget of the
Communities .                                                     Communities .
3 . Member States shall retain, by way of collection              3 . Member States shall retain, by way of collection
costs, 10 % of the amounts paid under 1 (a) and (b).              costs, 10 % of the amounts paid under 1 (a) and (b).
4 . The uniform rate referred to in 1 (c) shall                   4 . The uniform rate referred to in 1 (c) shall
correspond to the rate resulting from :                           correspond to the rate resulting from :
(a) the application of [ 1,4 % ] to the VAT assessment            (a) the application to the VAT assessment base for the
     base for the Member States ; and                                  Member States of :
                                                                           1,32 % in 1995 ,
                                                                           1,24 % in 1996,
                                                                           1,16 % in 1997 ,
                                                                           1,08 % in 1998 ,
                                                                           1,00 % in 1999 ; and
(b) the deduction of the gross amount of the reference            (b) the deduction of the gross amount of the reference
     compensation referred to in Article 4 (2). The gross              compensation referred to in Article 4 (2). The gross
     amount shall be the compensation amount adjusted                  amount shall be the compensation amount adjusted
     for the fact that the United Kingdom is not partici­              for the fact that the United Kingdom is not partici­
     pating in the financing of its own compensation and               pating in the financing of its own compensation and
     the Federal Republic of Germany's share is reduced                the Federal Republic of Germany's share is reduced
     by one-third. It shall be calculated as if the reference          by one-third . It shall be calculated as if the reference
     compensation amount were financed by Member                       compensation amount were financed by Member
     States according to their VAT assessment bases                    States according to their VAT assessment bases
     established in accordance with Article 2 ( 1 ) (c). [For          established in accordance with Article 2 ( 1 ) (c).
     1988, the gross amount of the reference compen­
     sation shall be reduced by ECU 780 million .]
5.     The rate fixed under paragraph 1 (d) shall apply to        5 . The rate fixed pursuant to paragraph 1 (d) shall
the GNP of each Member State .                                    apply to the GNP of each Member State.
6. If, at the beginning of the financial year, the budget         6. If, at the beginning of the financial year, the budget
has not been adopted, the previous uniform VAT rate               has not been adopted, the previous uniform VAT rate
and rate applicable to Member States' GNP, without                and rate applicable to Member States' GNP, without
prejudice to whatever provisions [may be adopted]                 prejudice to the provisions adopted in accordance
 ---pagebreak--- 6 . 11 . 93                          Official Journal of the European Communities                           No C 300 /23
                   ORIGINAL PROPOSAL                                              AMENDED PROPOSAL
in accordance with Article 8 (2) by reason of the entry of     with Article 7 (2) as regards the EAGGF monetary
an EAGGF monetary reserve in the budget, shall remain          reserve, the reserve to finance the Loan Guarantee Fund
applicable until the entry into force of the new rates.        and the reserve for emergency aid in non-member
                                                               countries, shall remain applicable until the entry into
                                                               force of the new rates .
7. [By way of derogation from 1 (c), if, on 1 January          7. For the purposes of applying this Decision, GNP
of the financial year in question, the rules for deter­        shall mean gross national product for the year at market
mining the uniform basis for assessing VAT are not yet         prices .
applied in all the Member States, the financial contri­
bution which a Member State not yet applying this
uniform basis is to make to the budget of the
Communities     in lieu of VAT shall be determined
according to the proportion of its gross national product
at market prices to the sum total of the gross national
product of the Member States at market prices in the
first three years of the five-year period preceding the
year in question. This derogation shall cease to have
effect as soon as the rules for determining the uniform
basis for assessing VAT are applied in all Member
States.]
8 . For the purposes of applying this Decision, GNP
shall mean gross national product for the year at market
prices.
                         Article 3                                                       Article 3
1 . The total amount of own resources assigned to the           1 . The total amount of own resources assigned to the
Communities may not exceed [ 1,20 %] of the total GNP          Communities may not exceed 1,27 % of the total GNP
of the Community for payment appropriations.                   of the Community for payment appropriations.
The total amount of own resources assigned to the              The total amount of own resources assigned to the
Communities may not, for any of the years during the           Communities may not, for any of the years during the
[ 1988 to 1992] period, exceed the following percentages       period 1995 to 1999, exceed the following percentages of
of the total GNP of the Community for the year in              the total GNP of the Community for the year in
question :                                                     question :
[— 1988 : 1,15,                                                  — 1995    1,21 ,
                                                                 — 1996    1,22 ,
 — 1989 : 1,17,
 — 1990 : 1,18 ,
                                                                 — 1997    1,24,
                                                                 — 1998    1,26,
 — 1991 : 1,19 ,
                                                                 — 1999    1,27 .
 — 1992 : 1,20].
2. The commitment appropriations entered in the                2 . The commitment appropriations entered in the
general budget of the Communities over the period              general budget of the Communities over the period 1995
[ 1988 to 1992] must follow an orderly progression             to 1999 must follow an orderly progression resulting in a
resulting in a total amount which does not exceed              total amount which does not exceed 1,335 % of the total
[ 1,30 %] of the total GNP of the Community in [ 1992].        GNP of the Community in 1999. An orderly ratio
A [precise] ratio between commitment appropriations            between commitment appropriations and payment appro­
and payment appropriations shall be maintained to              priations shall be maintained to guarantee their compati­
guarantee their compatibility and to enable the ceiling        bility and to enable the ceiling mentioned in paragraph 1
mentioned in paragraph 1 to be observed in subsequent          to be observed in subsequent years.
years .
 ---pagebreak--- No C 300/24                             Official Journal of the European Communities                                    6. 11 . 93
                      ORIGINAL PROPOSAL                                                    AMENDED PROPOSAL
3. The overall ceilings referred to in paragraphs 1 and           3. The overall ceilings referred to in paragraphs 1 and
2 shall continue to apply until such time as this Decision        2 shall continue to apply until such time as this Decision
is amended.                                                       is amended .
                            Article 4                                                           Article 4
The United Kingdom shall be granted a correction in               The United Kingdom shall be granted a correction in
respect of budgetary imbalances. This correction shall            respect of budgetary imbalances. This correction shall
consist of a basic amount and an adjustment. The                  consist of a basic amount and an adjustment. The
adjustment shall correct the basic amount to a reference          adjustment shall correct the basic amount to a reference
compensation amount.                                              compensation amount.
1 . The basic amount shall be established by :                     1 . The basic amount shall be established by:
    (a) calculating the difference, in the preceding                   (a) calculating the difference, in the preceding
         financial year, between :                                          financial year, between :
         — the percentage share of the United Kingdom                       — the percentage share of the United Kingdom
             in the sum total of the payments referred to in                    in the sum total of the payments referred to in
             Article 2 ( 1 ) (c) and (d) made during the                        Article 2 ( 1 ) (c) and (d) made during the
             financial year, including adjustments at the                       financial year, including adjustments at the
             uniform rate in respect of earlier financial                       uniform rate in respect of earlier financial
             years, and                                                         years, and
         — the percentage share of the United Kingdom                       — the percentage share of the United Kingdom
             in total allocated expenditure ;                                   in total allocated expenditure ;
    (b) applying the difference thus obtained to total                 (b) applying the difference thus obtained to total
         allocated expenditure ;                                            allocated expenditure ;
    (c) multiplying the result by 0,66 % .                             (c) multiplying the result by 0,66 % .
2. The reference compensation shall be the correction             2 . The reference compensation shall be the correction
    resulting from application of (a), (b) and (c) below,              resulting from application of (a), (b) and (c) below,
    corrected by the effects arising for the United                    corrected by the effects arising for the United
    Kingdom from the changeover to capped VAT and                      Kingdom from the changeover to capped VAT and
    the payments referred to in Article 2 ( 1 ) (d).                   the payments referred to in Article 2 ( 1 ) (d).
    It shall be established by :                                       It shall be established by:
    (a) calculating the difference, in the preceding                   (a) calculating the difference, in the preceding
         financial year, between :                                          financial year, between :
        — the percentage share of the United Kingdom                        — the percentage share of the United Kingdom
             in the sum total of VAT payments which                             in the sum total of VAT payments which
             would have been made during that financial                         would have been made during that financial
             year, including adjustments in respect of                          year, including adjustments in respect of
             earlier financial years, for the amounts                           earlier financial years, for the amounts
             financed by the resources referred to in Article                   financed by the resources referred to in Article
             2 (1) (c) and (d) if the uniform VAT rate had                      2 ( 1 ) (c) and (d) if the uniform VAT rate had
             been applied to non-capped bases, and                              been applied to non-capped bases, and
 ---pagebreak--- 6 . 11 . 93                              Official Journal of the European Communities                            No C 300 /25
                       ORIGINAL PROPOSAL                                                AMENDED PROPOSAL
              the percentage share of the United Kingdom                       the percentage share of the United Kingdom
              in total allocated expenditure ;                                 in total allocated expenditure ;
    (b) applying the difference thus obtained to total                 (b) applying the difference thus obtained to total
          allocated expenditure ;                                          allocated expenditure ;
    (c) multiplying the result by 0,66 ;                               (c) multiplying the result by 0,66 ;
    (d) subtracting the payments by the United Kingdom                 (d) subtracting the payments by the United Kingdom
          taken into account in the first indent of 1 (a) from             taken into account in the first indent of 1 (a) from
          those taken into account in the first indent of                  those taken into account in the first indent of
          2 (a);                                                           2 (a);
    (e) subtracting the amount calculated at (d) from the              (e) subtracting the amount calculated at (d) from the
          amount calculated at (c).                                        amount calculated at (c).
3. The basic amount shall be adjusted in such a way as             3 . The basic amount shall be adjusted in such a way as
    to correspond to the reference compensation amount.                to correspond to the reference compensation amount.
                             Article 5                                                        Article 5
 1 . The cost of the correction shall be borne by the               1 . The cost of the correction shall be borne by the
other Member States in accordance with the following               other Member States in accordance with the following
arrangements :                                                     arrangements :
the distribution of the cost shall first be calculated by          the distribution of the cost shall first be calculated by
reference to each Member State's share of the payments             reference to each Member State's share of the payments
referred to in Article 2 ( 1 ) (d), the United Kingdom             referred to in Article 2 ( 1 ) (d), the United Kingdom
being excluded ; it shall then be adjusted in such a way as        being excluded ; it shall then be adjusted in such a way as
to restrict the share of the Federal Republic of Germany           to restrict the share of the Federal Republic of Germany
to two-thirds of the share resulting from this calculation.        to two-thirds of the share resulting from this calculation.
2.     The correction shall be granted to the United               2. The correction shall be granted to the United
Kingdom by a reduction in its payments resulting from              Kingdom by a reduction in its payments resulting from
the application of Article 2 [( 1 ) (c)]. The costs borne by       the application of Article 2. The costs borne by the other
the other Member States shall be added to their                    Member States shall be added to their payments resulting
payments resulting from the application for each                   from the application for each Member State of Article 2 .
Member State of Article 2 [( 1 ) (c) up to a 1,4 % VAT
rate and Article 2 ( 1 ) (d)l .
3.     The Commission shall perform the calculations               3. The Commission shall perform the calculations
required for the application of Article 4 and this Article.        required for the application of Article 4 and this Article.
 ---pagebreak---  No C 300 /26                             Official Journal of the European Communities                                    6 . 11 . 93
                      ORIGINAL PROPOSAL                                                   AMENDED PROPOSAL
4. If, at the beginning of the financial year, the budget            4. If, at the beginning of the financial year, the budget
has not been adopted, the correction granted to the                 has not been adopted, the correction granted to the
United Kingdom and the costs borne by the other                     United Kingdom and the costs borne by the other
Member States as entered in the last budget finally                  Member States as entered in the last budget finally
adopted shall remain applicable.                                     adopted shall remain applicable.
                            Article 6                                                           Article 6
The revenue referred to in Article 2 shall be used                  The revenue referred to in Article 2 shall be used
without distinction to finance all expenditure entered in           without distinction to finance all expenditure entered in
the budget of the Communities . However, the revenue                the budget of the Communities . However, the revenue
needed to cover in full or in part the EAGGF monetary               needed to cover in full or in part the EAGGF monetary
reserve, entered in the budget of the Communities, shall            reserve, the reserve to finance the Loan Guarantee Fund
not be called up from the Member States [until the                  and the reserve for emergency aid in non-member
reserve] is implemented . Provisions for the operation of           countries, entered in the budget of the Communities,
that reserve shall be adopted as necessary in accordance            shall not be called up from the Member States until the
with Article 8 (2).                                                 reserves are implemented. Provisions for the operation of
                                                                    those reserves shall be adopted as necessary in
                                                                    accordance with Article 7 (2).
The preceding subparagraph shall be without prejudice               The preceding subparagraph shall be without prejudice
to the treatment of contributions by certain Member                 to the treatment of contributions by certain Member
States to supplementary programmes provided for in                  States to supplementary programmes provided for in
Article 130L of the Treaty establishing the European                Article 130L of the Treaty establishing the European
Economic Community.                                                 Economic Community.
                            Article 7
[Any surplus of the Communities' revenue over total
actual expenditure during a financial year shall be
carried over to the following financial year. However,
any surplus generated by a transfer from EAGGF
Guarantee chapters to the monetary reserve shall be
regarded as constituting own resources .]
                            Article 8                                                           Article 7
1 . The Community own resources referred to in                      1 . The Community own resources referred to in
Article 2 ( 1 ) (a) and (b) shall be collected by the Member        Article 2 ( 1 ) (a) and (b) shall be collected by the Member
States in accordance with the national provisions                   States in accordance with the national provisions
imposed by law, regulation or administrative action,                imposed by law, regulation or administrative action,
which shall , where appropriate, be adapted to meet the             which shall, where appropriate, be adapted to meet the
requirements of Community rules . The Commission shall              requirements of Community rules. The Commission shall
examine at regular intervals the national provisions                examine at regular intervals the national provisions
communicated to it by the Member States, transmit to                communicated to it by the Member States, transmit to
the Member States the adjustments it deems necessary in             the Member States the adjustments it deems necessary in
order to ensure that they comply with Community rules               order to ensure that they comply with Community rules
and report to the budget authority. Member States shall             and report to the budget authority. Member States shall
make the resources under Article 2 ( 1 ) (a) to (d)                 make the resources under Article 2 ( 1 ) (a) to (d)
available to the Commission .                                       availabie to the Commission .
 ---pagebreak--- 6 . 11 . 93                           Official Journal of the European Communities                               No C 300/27
                   ORIGINAL PROPOSAL                                                AMENDED PROPOSAL
2. Without prejudice to the auditing of the accounts            2.    Without prejudice to the auditing of the accounts
and to checks that they are lawful and regular and as           and to checks that they are lawful and regular and as
laid down in Article 206a of the Treaty establishing the        laid down in Article 206a of the Treaty establishing the
European Economic Community, such auditing and                  European Economic Community, such auditing and
checks being mainly concerned with the reliability and          checks being mainly concerned with the reliability and
effectiveness of national systems and procedures for            effectiveness of national systems and procedures for
determining the base for own resources accruing from            determining the base for own resources accruing from
VAT and GNP and without prejudice to the inspection             VAT and GNP and without prejudice to the inspection
arrangements made pursuant to Article 209 (c) of that           arrangements made pursuant to Article 209 (c) of that
Treaty, the Council shall, actirig unanimously on a             Treaty, the Council shall, acting unanimously on a
proposal from the Commission and after consulting the           proposal from the Commission and after consulting the
European Parliament, adopt the provisions necessary to          European Parliament, adopt the provisions necessary to
apply this Decision and to make possible the inspection          apply this Decision and to make possible the inspection
of the collection, the making available to the                  of the collection, the making available to the
Commission and payment of the revenue referred to in             Commission and payment of the revenue referred to in
Articles 2 and 5 .                                              Articles 2 and 5. On the basis of these provisions, the
                                                                Commission shall examine the VAT registration, calcu­
                                                                lation, recovery and control procedures applied in the
                                                                Member States and shall, if necessary, make recommen­
                                                                dations for enhancing the effectiveness of those
                                                                procedures .
                         Article 9                                                         Article 8
The mechanism for the graduated refund of own                   The mechanism for the graduated refund of own
resources accruing from VAT or GNP-based financial              resources accruing from VAT or GNP-based financial
contributions introduced for the Kingdom of Spain and           contributions introduced for Greece up to 1985 by
the Portuguese Republic up to 1991 by Articles 187 and          Article 127 of the 1979 Act of Accession and for Spain
374 of the 1985 Act of Accession shall apply to the own         and Portugal up to 1991 by Articles 187 and 374 of the
resources accruing from VAT and the GNP-based                    1985 Act of Accession shall apply to the own resources
resource referred to in Article 2 ( 1 ) (c) and (d) of this     accruing from VAT and the GNP-based resource
Decision. It shall also apply to payments by these two          referred to in Article 2 ( 1 ) (c) and (d) of this Decision. It
Member States in accordance with Article 5 (2) of this          shall also apply to payments by the two last-named
Decision . In the latter case the rate of refund shall be       Member States in accordance with Article 5 (2) of this
that applicable for the year in respect of which the            Decision. In the latter case the rate of refund shall be
correction is granted.                                          that applicable for the year in respect of which the
                                                                correction is granted. Corrections of refunds resulting
                                                                from any adjustments of VAT and GNP bases for the
                                                                years from 1981 to 1991 shall be entered as negative or
                                                                positive revenue, as appropriate, in the general budget.
                         Article 10                                                       Article 9
The Commission shall submit, by the end of [ 1991 ,] a          The Commission shall submit, by the end of 1999, a
report on the operation of the system, [including a             report on the operation of the system established by this
re-examination of the correction of budgetary                   Decision. Together with this report or separately, it shall
imbalances granted to the United Kingdom], established          also present a report on the findings of a study on the
by this Decision.                                               possibilities for creating a fifth own resource.
 ---pagebreak--- No C 300 / 28                              Official Journal of the European Communities                                    6 . 11 . 93
                       ORIGINAL PROPOSAL                                                    AMENDED PROPOSAL
                            Article 11                                                           Article 10
1 . Member States shall be notified of this Decision by               1 . Member States shall be notified of this Decision by
the Secretary-General of the Council of the European                 the Secretary-General of the Council of the European
Communities ; it shall be published in the Official Journal          Communities ; it shall be published in the Official Journal
of the European Communities.                                          of the European Communities.
Member States shall notify the Secretary-General of the              Member States shall notify the Secretary-General of the
Council of the European Communities without delay of                 Council of the European Communities without delay of
the completion of the procedures for the adoption of this            the completion of the procedures for the adoption of this
Decision in accordance with their respective constitu­               Decision in accordance with their respective constitu­
tional requirements .                                                tional requirements .
This Decision shall enter into force on the first day of             This Decision shall enter into force on the first day of
the month following receipt of the last of the notifi­               the month following receipt of the last of the notifi­
cations referred to in the second subparagraph . It shall            cations referred to in the second subparagraph . It shall
take effect on [1 January 1988 ].                                    take effect on 1 January 1995 .
2 . (a) Subject to [(b) and (c),] Decision [ 85 /257/EEC,            2 . (a) Subject to (b), Decision 88 / 376/EEC, Euratom
        Euratom] shall be repealed as of [1 January 1988].                   shall be repealed as of 1 January 1995 . Any
        Any references to the Decision of 21 April 1970                      references to the Decision of 21 April 1970, to
        or to Decision 85 /257/EEC, Euratom shall be                         Decision 85 /257/EEC, Euratom or to Decision
        construed as references to this Decision .                           88 / 376 / EEC , Euratom shall be construed as
                                                                             references to this Decision .
    (b) Article 3 of Decision 85 / 257 / EEC, Euratom shall              (b) Article 3 of Decision 85 / 257 / EEC, Euratom shall
        continue to apply to the calculation and                             continue to apply to the calculation and
        adjustment of revenue accruing from the                              adjustment of revenue accruing from the
        application of rates to the uncapped uniform                         application of rates to the uncapped uniform VAT
        assessment basis for value added tax in 1987 and                     base for 1987 and earlier years . Articles 2 , 4 and 5
        earlier years . [For 1988 the deduction in favour of                 of Decision 88 / 376/EEC, Euratom shall continue
        the United Kingdom in respect of previous                            to apply to the calculation and adjustment of
        financial years shall be calculated in accordance                    revenue accruing from the application of a
        with points (b) (i), (ii) and (iii) of Article 3 (3) of              uniform rate valid for all Member States to the
        the said Decision . The distribution of the cost of                  VAT base determined in a uniform manner and
        financing it shall be calculated in accordance with                  limited to 55 % of the GNP of each Member
        Article 5 ( 1 ) of this Decision . The amounts corre­                State and to the calculation of the correction of
        sponding to the deduction and the distribution of                    budgetary imbalances granted to the United
        the cost of financing it shall be dealt with in                      Kingdom for the years 1988 to 1994 . When
        accordance with Article 5 (2) of this Decision.]                     Article 2 (7) has to be applied, the value added
        When Article 2 (7) has to be applied, the value                      tax payments shall be replaced by financial contri­
        added tax payments shall be replaced by financial                    butions     in  the  calculations  referred    in   this
        contributions in the calculations referred to in this                paragraph for any Member State concerned ; this
        paragraph for any Member State concerned ; this                      system shall also apply to the payment of
        system shall also apply to the payment; of                           adjustments of corrections for earlier years.
        adjustments of corrections for earlier years .
    (c) Article 4 (2) of Decision 85 /257 /EEC, Euratom
        shall continue to apply to the financial contri­
        butions needed to finance the completion of the
        supplementary programme for the operation of
        the HFR (high-flux reactor) reactor of 1984 to
        1987 .]