Own resources in the light of European Council Conclusions on the MFF and next generation EU
Keywords:
budget, European Union, GNI, multiannual financial framework, Next Generation EU, own resources, plastic waste, VATAbstract
The article deals with the system of EU own resources which is currently formed by traditional own resources, VAT-based resource and GNI-based resource. The system and its potential reform have been subject of scientific and political debates for many years. On 21 July 2020, the European Council agreed on the multiannual financial framework 2021-2027 and a specific recovery instrument Next Generation EU. The European Council conclusions also confirmed the need to reform the existing system and to introduce new own resources (e.g. resource based on non-recycled plastic waste). Therefore, this article aims to elaborate on the EU own resources and their future post-2020. The methods of description, analysis, comparison, and synthesis were used for writing this contribution. First, the current system of EU budget revenue is analysed. Second, reform efforts since the establishment of the High Level Group on Own Resources are described. Third, the European Commission’s original proposal from 2018 is compared to the European Council conclusions.
Downloads
References
Benedetto, G.: Institutions and the route to reform of the European Union’s budget revenue, 1970–2017, Empirica, Vol. 44, Issue 4, 2017.
Cieslukowski, M.: A Sustainable European Union Own Resources System, Perspectives on Federalism, Vol. 8, Issue 2, 2016.
D’Alfonso, A.: Reforming the financing of the EU budget: Outlook, Perspectives on Federalism, Vol. 8, Issue 2, 2016.
Hudetz, A. et al.: Reform needs and options in the EU system of own resources, Empirica, Vol. 44, Issue 4, 2017.
König, P. et al.: Rozpočet a politiky Evropské unie. Příležitost pro změnu [The budget and policies of the European Union. Opportunity for a change], Praha: C. H. Beck, 2009.
Kosikowski, C.: Financial Law of the European Union, Białystok: Temida 2, 2008.
Núñez Ferrer, J. et al.: Study on the Potential and Limitations of Reforming the Financing of the EU Budget, Brussels: Centre for European Policy Studies, 2016.
Schratzenstaller, M.: The EU Own Resources System – Reform Needs and Options, Intereconomics, Vol. 48, Issue 5, 2013.
Schratzenstaller, M., Krenek, A.: Tax-based Own Resources to Finance the EU Budget, Intereconomics, Vol. 54, Issue 3, 2019.
Tyniewicki, M.: General Budget and Budget Law of the European Union. Białystok: Temida 2, 2008.
Legal Acts
Consolidated version of the Treaty on the Functioning of the European Union.
Council Decision 2014/335 (EU, Euratom) of 26 May 2014 on the system of own resources of the European Union.
Council Regulation 608/2014 (EU, Euratom) of 26 May 2014 laying down implementing measures for the system of own resources of the European Union.
Council Regulation 609/2014 (EU, Euratom) of 26 May 2014 on the methods and procedure for making available the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements.
Draft Council Decision 10025/20 (EU, Euratom) on the system of own resources of the European Union.
European Council conclusions EUCO 10/20 of 17, 18, 19, 20 and 21 July 2020.
European Council conclusions EUCO 37/13 of 7 and 8 February 2013.
European Parliament resolution 2019/2833 (RSP) on the 2021-2027 multiannual financial framework and own resources: time to meet citizens’ expectations.
Proposal COM (2018) 322 final for a Council Regulation laying down the multiannual financial framework for the years 2021 to 2027.
Proposal COM (2018) 325 final for a Council Decision on the system of Own Resources of the European Union.
Proposal COM (2018) 326 final for a Council Regulation on the methods and procedure for making available the Own Resources.
Proposal COM (2020) 22 final for a Regulation of the European Parliament and of the Council establishing the Just Transition Fund.
Other official documents
Communication COM (2018) 321 final. A Modern Budget for a Union that Protects, Empowers and Defends. The Multiannual Financial Framework for 2021-2027. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2018:321:FIN
Communication COM (2019) 640 final. The European Green Deal. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2019:640:FIN
Communication COM (2020) 442 final. The EU budget powering the recovery plan for Europe. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2020:442:FIN
European Commission. Reflection Paper on the Future of EU Finances. Available at: https://ec.europa.eu/commission/sites/beta-political/files/reflection-paper-eu-finances_en.pdf
Council of the European Union. MFF 2021-27: Own Resources legislative package –Progress report 9911/19. Available at: https://data.consilium.europa.eu/doc/document/ST-9911-2019-INIT/en/pdf
Final report and recommendations of the High Level Group on Own Resources. Available at: http://ec.europa.eu/budget/mff/hlgor/library/reports-communication/hlgor-report_20170104.pdf
Internet Resources
European Commission. Gross National Income-based own resource. Available at: https://ec.europa.eu/info/strategy/eu-budget/revenue/own-resources/national-contributions_en, accessed: 30th August 2020.
European Commission. Modernising the EU budget’s revenue side. Available at: https://ec.europa.eu/commission/sites/beta-political/files/budget-proposals-modernising-budget-revenue-side-may2018_en.pdf, accessed 18th September 2020.
European Council. Negotiating the EU long-term budget. Available at: https://www.consilium.europa.eu/en/policies/the-eu-budget/negotiating-the-long-term-eu-budget/, accessed 18th September 2020.
European Plastic Converters. EU Plastic Tax approved by European Council: A Danger for the EU Single Market & Recovery. Available at: https://www.plasticsconverters.eu/post/eu-plastic-tax-approved-by-european-council-a-danger-for-the-eu-single-market-recovery, accessed: 31st August 2020.
PlasticsEurope. Resource efficiency at risk: A plastic tax could jeopardize the circular economy goals. Available at: https://www.plasticseurope.org/en/newsroom/press-releases/archive-press-releases-2018/resource-efficiency-risk-plastic-tax-could-jeopardize-circular-economy-goals, accessed: 31st August 2020.
Downloads
Published
How to Cite
Issue
Section
License
Financial Law Review is an open access journal which means that all the articles published are freely available without charge to the reader or his/her institution.
The articles published in Financial Law Review are available under a licence Attribution-NonCommercial-NoDerivs 3.0 Unported (CC BY-NC-ND 3.0)
The Author furnishes a non-exclusive and free-of-charge license to use the his Work without territorial limitations and for an unlimited period.
Archiving policy
All texts from the journal Financial Law Review are published in electronic version. We strive to archive texts in various databases. Archival issues are also available on the platform of the Academic Scientific Journals: https://czasopisma.bg.ug.edu.pl/index.php/flr/index
Moreover articles published in the journal are archived at the Repository of the University of Gdansk.