Debate: System of own resources of the European Union – Own resource based on non-recycled plastic packaging waste and certain aspects of the GNI-based own resource – Collection of own resources accruing from value added tax
Date: WEDNESDAY, 24 MARCH 2021
Speaker: Johannes Hahn
Language: EN

Momentous decisions were also take on the financing side with the simplification of the VAT-based own resource and the introduction of the plastic own resource. Before that, the Union own-resources system had remained stable over a long time, and the main categories of own resources have remained the same since the 1980s. Traditional own-resources contributions from the Member States are based on value added tax and on gross national income.  I wish to thank the European Parliament for its unwavering support to both maintain the VAT-based own resource as a historic pillar of the existing system and to reinforce this system with the introduction of additional own resources. While the main elements of the VAT own resource are maintained, the complexity of calculations and, therefore, the administrative burden for Member States and the Commission are significantly reduced.  Let me come now to the most notable novelty entering into force in 2021: the new own resource based on non-recycled plastic packaging waste. It is introducing a novel mechanism to encourage Member States to achieve their environmental commitments without prescribing how. Clearly, the ultimate success in reducing the quantity of plastic packaging waste that goes unrecycled depends on the actual increase of virtuous behaviours, using less plastic packaging while sorting and recycling more. To ensure such success, we must measure it credibly. The implementing regulations and the Making Available Regulation provide the Commission with adequate control powers and ensure that the Commission is assisted by an expert group. These regulations also rely on sectoral legislation, which has recently been sharpened to improve the quality of reporting and the comparability of statistical data. This is crucial to guarantee equal treatment of all contributors. There remains one element in the package you are examining today which the Commission cannot accept. The rapid review procedure that has been included in the Making Available Regulation 2 (MAR2) and the VAT regulation by the Council would put at risk the timely and comprehensive making available of resources by Member States. Therefore, we really welcome the support of the European Parliament with regard to dropping this. In order for the own-resource system to function properly, we need a solid framework in place to ensure that we collect EU own resources effectively, in a timely manner and with minimum administrative burden. So far, the system in place has fulfilled the first two criteria as acknowledged in the annual discharge, where revenue has been a green area, and in EU ratings.  The simplifications introduced in the Own Resources Decision approved in December will contribute to a reduction of the administrative burden. To bring those changes into practice, it’s essential to agree on the implementing regulation as soon as possible. A delay would hamper the operationalisation of the new Own Resources Decision. So far, 13 Member States have ratified the decision, and we are confident that the process will be concluded in May, so that it can enter into force by June for the start of the NGEU borrowing.