System of own resources of the European Union

2021/0430(CNS)

The Committee on Budgets adopted in the framework of a special legislative procedure (Parliament’s consultation) the report by José Manuel FERNANDES (EPP, PT) and Valérie HAYER (Renew Europe, FR) on the proposal for a Council decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union.

The committee made a few amendments concerning the following issues:

Categories of own resources

The Commission proposes a thoughtfully calibrated basket of new revenue sources composed of a share of ETS auctioning revenues, the proceeds of the sale of carbon border adjustment mechanism (CBAM) certificates and an own resource based on the OECD/G20 ‘Pillar One’ agreement in the area of corporate taxation

The proposal provides that Member States will make a national contribution to the EU budget based on the share of the residual profits of the largest and most profitable multinational enterprises re-allocated to Member States in case they are end market jurisdictions where goods or services are used or consumed under the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting agreement.

In this report, Members proposed that the revenue from the application of a uniform rate of call equal to 100% (instead of 75%) of the revenue from the sale of certificates of the carbon adjustment mechanism at borders should constitute own resources entered in the EU budget.

Review

Members suggested that if by the end of 2023 the process of ratification of the OECD/G20 (IF) Pillar 1 Agreement has not started in a critical mass of countries as defined by the Multilateral Convention, the Commission should propose a new own resource in connection with the single market, such as a digital levy or a similar measure, in order to generate revenues by 2026.