natgillin/translations-raw huggingface dataset:
Agricultural levies were introduced under the common agricultural policy in 1962, are charged on trade in agricultural products with non-member countries and vary according to price levels on the world and European markets.
Agricultural levies were introduced under the common agricultural policy in 1962, are charged on trade in agricultural products with non-member countries and vary according to price levels on the world and European markets.
Besides agricultural levies, there are also levies on the production and storage of sugar and isoglucose (unlike the levies on agricultural imports, they are internal to the Community).
Besides agricultural levies, there are also levies on the production and storage of sugar and isoglucose (unlike the levies on agricultural imports, they are internal to the Community).
Customs duties and agricultural levies were the first own resources and became known as traditional own resources (TOR) because they are revenue collected by virtue of Community policies rather than revenue obtained from the Member States as national contributions.
Customs duties and agricultural levies were the first own resources and became known as traditional own resources (TOR) because they are revenue collected by virtue of Community policies rather than revenue obtained from the Member States as national contributions.
VAT own resources were introduced because the traditional own resources were not sufficient to finance the Community budget.
VAT own resources were introduced because the traditional own resources were not sufficient to finance the Community budget.
Because of the need to harmonise the VAT base this complex resource did not come into use until 1980.
Because of the need to harmonise the VAT base this complex resource did not come into use until 1980.
It is obtained by applying a given rate to a base determined in a uniform manner.
It is obtained by applying a given rate to a base determined in a uniform manner.
From 1988 to 1994 the base could not exceed 55% of the Member States' GNP.
From 1988 to 1994 the base could not exceed 55% of the Member States' GNP.
After 1995 the limit was lowered to 50% of GNP for Member States with a per capita GNP below 90% of the Community average.
After 1995 the limit was lowered to 50% of GNP for Member States with a per capita GNP below 90% of the Community average.
Between 1995 and 1999 the new limit was gradually extended to all the Member States.
Between 1995 and 1999 the new limit was gradually extended to all the Member States.
The maximum call-in rate of VAT was originally limited to 1% of the base.
The maximum call-in rate of VAT was originally limited to 1% of the base.
From 1986 this ceiling was raised to 1.4% to meet the costs of the Spanish and Portuguese enlargement.
From 1986 this ceiling was raised to 1.4% to meet the costs of the Spanish and Portuguese enlargement.
The 1994 own resources decision however, for reasons of equity, provided for a gradual return to the 1% limit between 1995 and 1999.
The 1994 own resources decision however, for reasons of equity, provided for a gradual return to the 1% limit between 1995 and 1999.
In 2002 and 2003, the maximum rate was reduced to 0.75% , and from 2004 to 0.50%.
In 2002 and 2003, the maximum rate was reduced to 0.75% , and from 2004 to 0.50%.
Thus it is not a true own resource based on a tax levied nationally, but only a way to calculate a Member State's contribution.
Thus it is not a true own resource based on a tax levied nationally, but only a way to calculate a Member State's contribution.
The GNI-based own resource is obtained by applying a rate fixed each year under the budget procedure to a base representing the sum of the gross national products at market prices.
The GNI-based own resource is obtained by applying a rate fixed each year under the budget procedure to a base representing the sum of the gross national products at market prices.
It is calculated by reference to the difference between expenditure and the yield of the other own resources.
It is calculated by reference to the difference between expenditure and the yield of the other own resources.
It is the "key" resource, as it determines the cap on the VAT base, how the cost of the UK rebate is shared, and the ceiling on total resources under the financial perspective.
It is the "key" resource, as it determines the cap on the VAT base, how the cost of the UK rebate is shared, and the ceiling on total resources under the financial perspective.
The Edinburgh agreement of December 1992, which entered into force at the beginning of 1995, increased this overall ceiling from originally 1.14% to 1.27% of Europe's GNP.
The Edinburgh agreement of December 1992, which entered into force at the beginning of 1995, increased this overall ceiling from originally 1.14% to 1.27% of Europe's GNP.
The origins of own resources
The origins of own resources
1958 - 1970: Contributions from the Member States
1958 - 1970: Contributions from the Member States
Under the Treaty of Rome of 25 March 1957 the European Economic Community was to be financed by national contributions for a transitional period before changing over to a system of own resources
Under the Treaty of Rome of 25 March 1957 the European Economic Community was to be financed by national contributions for a transitional period before changing over to a system of own resources
Own resources can be taken to mean a source of finance separate and independent of the Member States, some kind of tax revenue assigned once and for all to the Community to fund its budget and due to it by right without the need for any subsequent decision by the national authorities.
Own resources can be taken to mean a source of finance separate and independent of the Member States, some kind of tax revenue assigned once and for all to the Community to fund its budget and due to it by right without the need for any subsequent decision by the national authorities.
The Member States, then, would be required to make payments available to the Community for its budget. .
The Member States, then, would be required to make payments available to the Community for its budget. .
The principle was set down in Article 201 of the Treaty, which stated: "Without prejudice to other revenue, the budget shall be financed wholly from own resources."
The principle was set down in Article 201 of the Treaty, which stated: "Without prejudice to other revenue, the budget shall be financed wholly from own resources."
In 1965 a first attempt to transfer customs duties and agricultural levies - the "natural" own resources deriving from Community policies (the customs union and the common agricultural policy) - failed in the face of French opposition.
In 1965 a first attempt to transfer customs duties and agricultural levies - the "natural" own resources deriving from Community policies (the customs union and the common agricultural policy) - failed in the face of French opposition.
The ensuing "crisis" was resolved a year later by the famous Luxembourg compromise but the 1966 target date for the changeover to a system of financing that would guarantee the Community some measure of independence could not be kept.
The ensuing "crisis" was resolved a year later by the famous Luxembourg compromise but the 1966 target date for the changeover to a system of financing that would guarantee the Community some measure of independence could not be kept.
It was not until the Hague summit in 1969 that the Heads of State or Government, in an effort to revive the Community after some years of difficulty, finally took the decision to go ahead with the change.
It was not until the Hague summit in 1969 that the Heads of State or Government, in an effort to revive the Community after some years of difficulty, finally took the decision to go ahead with the change.
1970: First own resources decision
1970: First own resources decision
On 21 April 1970 the Council adopted a decision assigning to the Communities own resources to cover all their expenditure.
On 21 April 1970 the Council adopted a decision assigning to the Communities own resources to cover all their expenditure.
This decision marked the end of national contributions, through which the Member States had enjoyed some scope for controlling the policies undertaken by the Communities, and the beginning of an independent system of financing by "traditional" own resources (agricultural levies and customs duties) and a resource based on value added tax (VAT).
This decision marked the end of national contributions, through which the Member States had enjoyed some scope for controlling the policies undertaken by the Communities, and the beginning of an independent system of financing by "traditional" own resources (agricultural levies and customs duties) and a resource based on value added tax (VAT).
The 1970 decision on own resources set the Communities apart from other international organisations, which all rely for funding on contributions from their members.
The 1970 decision on own resources set the Communities apart from other international organisations, which all rely for funding on contributions from their members.
1985: Second own resources decision - British rebate
1985: Second own resources decision - British rebate
In 1984 the Fontainebleau European Council decided to introduce a correction for the United Kingdom.
In 1984 the Fontainebleau European Council decided to introduce a correction for the United Kingdom.
This mechanism gives the United Kingdom a rebate equivalent to 0.66% of its net balance.
This mechanism gives the United Kingdom a rebate equivalent to 0.66% of its net balance.
The cost of financing the UK rebate is shared between the other Member States according to their share of GNP (except in the case of Germany, whose share is reduced by a third).
The cost of financing the UK rebate is shared between the other Member States according to their share of GNP (except in the case of Germany, whose share is reduced by a third).
1988: Third own resources decision - Introduction of GNP based resource and overall ceiling
1988: Third own resources decision - Introduction of GNP based resource and overall ceiling
Since CAP spending remained unchanged and the revenues from TORs continued to decline, in 1988, the Brussels European Council introduced a new own resource based on the Member States' GNP.
Since CAP spending remained unchanged and the revenues from TORs continued to decline, in 1988, the Brussels European Council introduced a new own resource based on the Member States' GNP.
It also set up an overall ceiling of 1.14% percent of GNP to the total amount of own resources which could be called to finance the Community's spending.
It also set up an overall ceiling of 1.14% percent of GNP to the total amount of own resources which could be called to finance the Community's spending.
1994: Fourth own resources decision - Deduction of collection costs for traditional own resources
1994: Fourth own resources decision - Deduction of collection costs for traditional own resources
Own resources are collected by the Member States on behalf of the Community.
Own resources are collected by the Member States on behalf of the Community.
Therefore, the 1994 decision allowed for the Member States to retain 10% of the traditional own resources they collected in order to cover their collection costs.
Therefore, the 1994 decision allowed for the Member States to retain 10% of the traditional own resources they collected in order to cover their collection costs.
2000: Fifth own resources decision
2000: Fifth own resources decision
Council Decision 2000/597/EC , Euratom, of 29 September 2000 on the system of the European Communities' own resources, OJ L 253, 07.10.2000. - "Equitable, transparent, cost-effective and simple"
Council Decision 2000/597/EC , Euratom, of 29 September 2000 on the system of the European Communities' own resources, OJ L 253, 07.10.2000. - "Equitable, transparent, cost-effective and simple"
In 1999, the Berlin European Council called on the Commission to prepare a new own resources decision which should provide the Union with adequate means for the period 2000-2006 while at the same time adhering to strict budgetary discipline.
In 1999, the Berlin European Council called on the Commission to prepare a new own resources decision which should provide the Union with adequate means for the period 2000-2006 while at the same time adhering to strict budgetary discipline.
The new system should be “equitable, transparent, cost-effective and simple”, and based on criteria which express best the member States' ability to contribute to the financing of the Union.
The new system should be “equitable, transparent, cost-effective and simple”, and based on criteria which express best the member States' ability to contribute to the financing of the Union.
This latest Own Resources Decision of 29 September 2000 has entered into force on 1 March 2002.
This latest Own Resources Decision of 29 September 2000 has entered into force on 1 March 2002.
The revision clause it contains calls on the Commission to undertake a general review of the own resources system before 2006 in the light of the effects of enlargement.
The revision clause it contains calls on the Commission to undertake a general review of the own resources system before 2006 in the light of the effects of enlargement.
The review is also to explore the possibility of modifying the structure of the own resources system by creating new autonomous resources and examining the correction of budgetary imbalances granted to the UK.
The review is also to explore the possibility of modifying the structure of the own resources system by creating new autonomous resources and examining the correction of budgetary imbalances granted to the UK.
The main features of the system currently in force are:
The main features of the system currently in force are:
Ø the own resources ceiling remains at 1.27% of the Union's GNP (=1.24% of GNI)
Ø the own resources ceiling remains at 1.27% of the Union's GNP (=1.24% of GNI)
As from the year 2002, the concept of gross national product (GNP) has been replaced by the concept of gross national income (GNI) in the EU budgetary and own resources area.
As from the year 2002, the concept of gross national product (GNP) has been replaced by the concept of gross national income (GNI) in the EU budgetary and own resources area.
Thus, percentages for years before 2002 relate to the GNP, later ones to the GNI.
Thus, percentages for years before 2002 relate to the GNP, later ones to the GNI.
For example: The EU expenditure ceiling of 1.27% of GNP corresponds to 1.24% of GNI using the new statistical approach. ;
For example: The EU expenditure ceiling of 1.27% of GNP corresponds to 1.24% of GNI using the new statistical approach. ;
Ø the allowance for the collection cost of own resources has risen from 10% to 25%;
Ø the allowance for the collection cost of own resources has risen from 10% to 25%;
Ø the maximum call-in rate of VAT was reduced to 0.75% in 2002 and 2003, and to 0.50% from 2004;
Ø the maximum call-in rate of VAT was reduced to 0.75% in 2002 and 2003, and to 0.50% from 2004;
Ø the value added tax base of the Member States continues to be restricted to 50% of their GNP (capping of the VAT base);
Ø the value added tax base of the Member States continues to be restricted to 50% of their GNP (capping of the VAT base);
Ø Germany, the Netherlands, Austria and Sweden pay only 1/4 of their normal share of the cost of the UK rebate.
Ø Germany, the Netherlands, Austria and Sweden pay only 1/4 of their normal share of the cost of the UK rebate.
The remaining 3/4 are financed by the other 10 Member States;
The remaining 3/4 are financed by the other 10 Member States;
Ø two technical adjustments were made to the UK rebate to offset the windfall effects arising from the increase in collection costs and pre-accession expenditure.
Ø two technical adjustments were made to the UK rebate to offset the windfall effects arising from the increase in collection costs and pre-accession expenditure.
British rebate
British rebate
The so-called British rebate was established by the Fontainebleau European Council in 1984, which stated in its conclusions:
The so-called British rebate was established by the Fontainebleau European Council in 1984, which stated in its conclusions:
Expenditure policy is ultimately the essential means of resolving the question of budgetary imbalances.
Expenditure policy is ultimately the essential means of resolving the question of budgetary imbalances.
However, it has been decided 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.
However, it has been decided 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.
The origin of the problem was the special situation of the United Kingdom which was characterised by two factors:
The origin of the problem was the special situation of the United Kingdom which was characterised by two factors:
Ø a small agricultural sector resulting in very low Community agricultural spending in the UK
Ø a small agricultural sector resulting in very low Community agricultural spending in the UK
Ø a large contribution to the financing of the Community budget because of the large proportion of the country's GNP accounted for by the VAT base.
Ø a large contribution to the financing of the Community budget because of the large proportion of the country's GNP accounted for by the VAT base.
Under the current compensation mechanism, two thirds (66%) of the difference between the United Kingdom's percentage share of VAT payments and its percentage share of allocated Community expenditure, applied to total allocated expenditure, is refunded to the United Kingdom by way of a reduction in its VAT base.
Under the current compensation mechanism, two thirds (66%) of the difference between the United Kingdom's percentage share of VAT payments and its percentage share of allocated Community expenditure, applied to total allocated expenditure, is refunded to the United Kingdom by way of a reduction in its VAT base.
Since 1985 the United Kingdom has thus been receiving a rebate on its yearly contribution to the budget, amounting to a yearly EUR 4,6 billion average over 1997-2003.
Since 1985 the United Kingdom has thus been receiving a rebate on its yearly contribution to the budget, amounting to a yearly EUR 4,6 billion average over 1997-2003.
This rebate is financed jointly by all the other Member States in accordance with their respective percentage of VAT payments with Germany, the Netherlands, Austria and Sweden only paying a quarter of what their shares ought to be.
This rebate is financed jointly by all the other Member States in accordance with their respective percentage of VAT payments with Germany, the Netherlands, Austria and Sweden only paying a quarter of what their shares ought to be.
Despite the general approach the Fontainebleau Council took (" any Member state sustaining an excessive budgetary burden"), this correction mechanism has ever since applied only to the UK.
Despite the general approach the Fontainebleau Council took (" any Member state sustaining an excessive budgetary burden"), this correction mechanism has ever since applied only to the UK.
Over the years, slowly but surely, it has become obvious that the presence of the UK rebate has noticeably reduced the desired correlation between the ability of each Member State to contribute to the EU budget and its own resources payments.
Over the years, slowly but surely, it has become obvious that the presence of the UK rebate has noticeably reduced the desired correlation between the ability of each Member State to contribute to the EU budget and its own resources payments.
In addition, the complexity of the correction mechanism has also considerably diminished the transparency of the whole own resources system.
In addition, the complexity of the correction mechanism has also considerably diminished the transparency of the whole own resources system.
Shares of the main own resources components
Shares of the main own resources components
From the introduction of the GNP-based resource in 1988 until today the share of each individual component in the Community's revenue has undergone a dramatic change:
From the introduction of the GNP-based resource in 1988 until today the share of each individual component in the Community's revenue has undergone a dramatic change:
Type of
Type of
rev e nue
rev e nue
Agricultural duties and
Agricultural duties and
sugar levies
sugar levies
GNI based
GNI based
Miscellaneous - Surplus from previous year
Miscellaneous - Surplus from previous year
* based on Budget 2004
* based on Budget 2004
** based on PDB 2005
** based on PDB 2005
Clearly, the GNI based resource has become overwhelmingly important while the share of traditional own resources has shown a trend to decline dramatically (accelerated by the fact that the percentage Member States were permitted to retain to compensate for their collection costs was raised from 10% to 25% with effect of 1 January 2001).
Clearly, the GNI based resource has become overwhelmingly important while the share of traditional own resources has shown a trend to decline dramatically (accelerated by the fact that the percentage Member States were permitted to retain to compensate for their collection costs was raised from 10% to 25% with effect of 1 January 2001).
VAT contributions have also declined due to the reforms limiting the VAT base of the Member States to 50% of their GNI.
VAT contributions have also declined due to the reforms limiting the VAT base of the Member States to 50% of their GNI.
With the introduction of the GNP resource and the reduction in the VAT call-up rate, Member States' contributions have become more closely correlated with national GNPs; this means improved equity
With the introduction of the GNP resource and the reduction in the VAT call-up rate, Member States' contributions have become more closely correlated with national GNPs; this means improved equity
In the sense of “proportionality of gross contributions to income across Member States”; it has to be noted, however, that under the current system perfect equity cannot be expected since the VAT resource will continue to yield revenues which will not be correlated with national income. in gross budget contributions.
In the sense of “proportionality of gross contributions to income across Member States”; it has to be noted, however, that under the current system perfect equity cannot be expected since the VAT resource will continue to yield revenues which will not be correlated with national income. in gross budget contributions.
While this development might lead to a closer correlation of the Member States' ability to contribute with their actual levels of contributions, at the same time, the decline of traditional own resources has resulted in a loss of financial autonomy for the European Union.
While this development might lead to a closer correlation of the Member States' ability to contribute with their actual levels of contributions, at the same time, the decline of traditional own resources has resulted in a loss of financial autonomy for the European Union.
2 ON THE EUROPEAN COMMUNITIES OWN RESOURCES
2 ON THE EUROPEAN COMMUNITIES OWN RESOURCES
The current Own Resources system - Problems and shortcomings
The current Own Resources system - Problems and shortcomings
The net-payer debate
The net-payer debate
Traditional own resources are the only true own resources of the Union (although Member States tend to also regard them as national contributions).
Traditional own resources are the only true own resources of the Union (although Member States tend to also regard them as national contributions).
The lower their share becomes, the more the EU will depend on what is considered classical intergovernmental transfers.
The lower their share becomes, the more the EU will depend on what is considered classical intergovernmental transfers.