Debate: Draft Council decision on the system of own resources of the European Union
Date: MONDAY, 14 SEPTEMBER 2020
Speaker: Johannes Hahn
Language: EN

First, it has taken a pivotal decision to borrow on financial markets to support the post-COVID-19 recovery in the Member States. This will be enabled through the Own Resources Decision. Next Generation EU, together with the core multiannual financial framework, is the largest package ever financed through the European Union budget. It will give an unprecedented, ambitious answer to an unprecedented crisis. Second, the European Council has opened the door for modernisation of the own-resources system, which has not been reformed since 1988. This marks the first modernisation for more than half of our Member States – 16 out of 27.   The European Council endorsed the simplification of the value-added-tax-based own resource, and agreed upon a new own resource based on non-recycled plastic packaging waste as of 2021, and these are only the first steps, as it has also agreed that additional new own resources should be introduced during the next multiannual financial framework period – from 2021-2027 – to finance the repayment of the Next Generation EU borrowing and enable early repayments.  The European Parliament and the Commission have for a long time worked towards reform of the revenue side of the EU budget. It’s very encouraging that the Member States have begun to see what we have been advocating for so long. We have clearly managed to give a new drive to the Own Resource Decision, and I would like to thank the European Parliament for its support, and, may I say, stubbornness.  Let me go more into detail on the report you are set to adopt during this plenary. You foresee an ambitious timeline for the introduction of additional new own resources in your report. We see eye to eye. The Commission concurs with the need to introduce additional new own resources which are closely aligned with our policy priorities and can support the repayment of funds on the Next Generation EU. I am happy to see that there are points of convergence with the European Council conclusions of last July. This makes me hopeful that it will be feasible to introduce new own resources in the short term. In fact, preparatory work has already begun. We spare no efforts to match ambitions with the reality of the political and legal process. As you know, this is also one of the main issues of the trilateral political dialogue meetings on the MFF. Compared to the financial crisis of 2008-2009, Europe’s response to this crisis was exceptional in both strength and speed. You are set to adopt your report less than two months after the European Council at unprecedented pace. It is indeed commendable and thank you for that.  I am confident that the Council and national parliaments will follow your lead, thus facilitating the beginning of borrowing on the Next Generation EU already in January. To conclude, let me just underline that we would want to see the negotiations on the entire package, including the core MFF, progressing with the same impressive pace. Only in this way can we kick-start a recovery phase as of 1 January next year, with an ambitious and comprehensive recovery plan for Europe, so we need it now and not next year.