System of the European Communities' own resources: timing for making available the adjustments

The European Parliament adopted by 566 votes to 73, with 66 abstentions, a legislative resolution on the proposal for a Council regulation amending Regulation (EC, Euratom) No 1150/2000 implementing Decision 2007/436/EC, Euratom on the system of the European Communities' own resources.

It is recalled that the exceptionally high amounts of 2014 adjustments in the VAT- and GNI-based own resources, may represent a high financial burden for certain Member States.

Parliament emphasized that the Commission proposal is part of a wider negotiation package including the 2014 amending budgets and 2015 Budget.

In this context, Parliament approved the proposal as amended:

• According to the proposal, Members States may only apply the provisions of the amended Regulation if they have informed the Commission before the first working day of December of their decision, and of the date or dates of entry of the amount of the adjustments in the account referred to in this Regulation. Members specified that the Commission shall notify the European Parliament and the Council of any such decision, including the concerned Member States, the number of instalments, the amount of each instalment and the dates of entry in the accounts.
• As regards the operations which constitute modifications to revenue in respect of the financial year in which they occur, the Commission shall report to the European Parliament and the Council on the modifications of revenue under this Regulation.

In its legislative resolution, Parliament deplored that the issue of the deferral of national contributions adjustments took precedence, within the Council, over finding a negotiating position on the 2014 and 2015 budgetary negotiations. Moreover, it is also concerned by the proposed larger discretion left to Member States as to the timing of their additional contributions resulting from GNI adjustments to the Union budget. Members stressed that this creates a precedent that could have an impact on the Commission's treasury and the credibility of the Union's budget.

Parliament also stressed the fact that this proposal makes the Own Resources system even more complex and is aimed at amending legislation that will soon be replaced, retroactively, by already agreed pieces of legislation. It underlined, against this background, the crucial role of the High Level Group on Own Resources in delivering proposals for overcoming the deficiencies of the current system.