Article 1 Subject matter
This Decision lays down rules on the allocation of own resources of the Union in order to ensure, pursuant to Article 311 of the Treaty on the Functioning of the European Union (TFEU), the financing of the Union's annual budget.
Article 2 Categories of own resources and specific methods for their calculation
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 third 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) without prejudice to the second subparagraph of paragraph 4, the application of a uniform rate valid for all Member States to the harmonised VAT assessment bases determined in accordance with Union rules. For each Member State the assessment base to be taken into account for this purpose shall not exceed 50 % of gross national income (GNI), as defined in paragraph 7; (c) without prejudice to the second subparagraph of paragraph 5, 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 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 TFEU, provided that the procedure laid down in Article 311 TFEU 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, 20 % of the amounts referred to in point (a) of paragraph 1. 4. The uniform rate referred to in paragraph 1(b) shall be fixed at 0,30 %. For the period 2014-2020 only, the rate of call of the VAT-based own resource for Germany, the Netherlands and Sweden shall be fixed at 0,15 %. 5. The uniform rate referred to in paragraph 1(c) shall apply to the GNI of each Member State. For the period 2014-2020 only, Denmark, the Netherlands and Sweden shall benefit from gross reductions in their annual GNI-based contribution of EUR 130 million, EUR 695 million and EUR 185 million respectively. Austria shall benefit from a gross reduction in its annual GNI-based contribution of EUR 30 million in 2014, EUR 20 million in 2015 and EUR 10 million in 2016. All these amounts shall be measured in 2011 prices and adjusted to current prices by applying the most recent GDP deflator for the EU expressed in euro, as provided by the Commission, which is available when the draft budget is drawn up. These gross reductions shall be granted after the calculation of the correction in favour of the United Kingdom and its financing referred to in Articles 4 and 5 of this Decision and shall have no impact thereon. These gross reductions shall be financed by all Member States. 6. If, at the beginning of the financial year, the budget has not been adopted, the existing VAT and GNI rates of call shall remain applicable until the entry into force of the new rates. 7. GNI referred to in paragraph 1(c) shall mean an annual GNI at market price, as provided by the Commission in application of Regulation (EU) No 549/2013 (‘ESA 2010’). Should amendments to ESA 2010 result in significant changes in the GNI referred to in paragraph 1(c), the Council, acting unanimously on a proposal of the Commission and after consulting the European Parliament, shall decide whether these amendments are to apply for the purposes of this Decision.
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. 3. For the purposes of this Decision, as soon as all Member States have transmitted their data on the basis of ESA 2010, the Commission shall recalculate the ceilings set out in paragraphs 1 and 2 on the basis of the following formula: In that formula, ‘t’ is the latest full year for which the data for the calculation of GNI are available. 4. Where amendments to ESA 2010 result in significant changes in the level of GNI, the Commission shall recalculate the ceilings set out in paragraphs 1 and 2, as recalculated in accordance with paragraph 3, on the basis of the following formula: In that formula, ‘t’ is the latest full year for which the data for the calculation of GNI are available. In that formula, ‘x’ and ‘y’ respectively are the ceilings as recalculated according to paragraph 3.
Article 4 Correction mechanism in favour of the United Kingdom
The United Kingdom shall be granted a correction in respect of budgetary imbalances. This correction shall be established by: (a) calculating the difference, in the preceding financial year, between: — the percentage share of the United Kingdom in the sum of uncapped VAT assessment bases, and — the percentage share of the United Kingdom in total allocated expenditure; (b) multiplying the difference thus obtained by total allocated expenditure; (c) multiplying the result under point (b) by 0,66; (d) subtracting from the result under point (c) the effects arising for the United Kingdom from the transition to capped VAT and the payments referred to in Article 2(1)(c), namely the difference between: — what the United Kingdom would have had to pay for the amounts financed by the resources referred to in Article 2(1)(b) and (c), if the uniform rate had been applied to non-capped VAT bases, and — the payments of the United Kingdom pursuant to Article 2(1)(b) and (c); (e) subtracting from the result under point (d) the net gains of the United Kingdom resulting from the increase in the percentage of resources referred to in Article 2(1)(a) retained by Member States to cover collection and related costs; (f) adjusting the calculation, by reducing total allocated expenditure by total allocated expenditure in Member States that have acceded to the Union after 30 April 2004, except for agricultural direct payments and market-related expenditure as well as that part of rural development expenditure originating from the EAGGF, Guarantee Section.
Article 5 Financing the correction mechanism in favour of the United Kingdom
1. The cost of the correction set out in Article 4 shall be borne by the Member States other than the United Kingdom in accordance with the following arrangements: (a) the distribution of the cost shall first be calculated by reference to each Member State's share of the payments referred to in Article 2(1)(c), the United Kingdom being excluded and without taking account of the gross reductions in the GNI-based contributions of Denmark, the Netherlands, Austria and Sweden referred to in Article 2(5); (b) it shall then be adjusted in such a way as to restrict the financing share of Germany, the Netherlands, Austria and Sweden to one fourth of their normal share resulting from this calculation. 2. The correction shall be granted to the United Kingdom by a reduction in its payments resulting from the application of Article 2(1)(c). The costs borne by the other Member States shall be added to their payments resulting from the application for each Member State of Article 2(1)(c). 3. The Commission shall perform the calculations required for the application of Article 2(5), Article 4 and this Article. 4. If, at the beginning of the financial year, the budget has not been adopted, the correction granted to the United Kingdom and the costs borne by the other Member States as entered in the last budget finally adopted shall remain applicable.
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 to the Commission
1. The Union's own resources referred to in Article 2(1)(a) 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. Member States shall make the resources provided for in Article 2(1)(a), (b) and (c) available to the Commission, in accordance with regulations adopted under Article 322(2) TFEU.
Article 9 Implementing measures
The Council shall, in accordance with the procedure set out in the fourth paragraph of Article 311 TFEU, lay down implementing measures as regards the following elements of the own resources system: (a) the procedure for calculating and budgeting the annual budgetary balance as set out in Article 7; (b) the provisions and arrangements necessary for controlling and supervising the revenue referred to in Article 2, including any relevant 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 70/243/ECSC, EEC, Euratom ( 5 ) , to Council Decision 85/257/EEC, Euratom ( 6 ) , to Council Decision 88/376/EEC, Euratom ( 7 ) , to Council Decision 94/728/EC, Euratom ( 8 ) , to Council Decision 2000/597/EC, Euratom ( 9 ) 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 and 5 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 between 50 % and 55 % of the GNP or GNI of each Member State, depending on the relevant year, and to the calculation of the correction of budgetary imbalances granted to the United Kingdom for the years 1995 to 2013. 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.
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 .