Decision on the system of own resources
The operation of the European Union (EU) is based on a balanced budget ensuring that the Union has adequate resources to finance its policies, while maintaining strict budgetary discipline. The Own Resources Decision lays down the basic provisions for financing the EU budget. It was adopted unanimously within the Council and after ratification in all Member States.
Council Decision 2007/436/EC, Euratom of 7 June 2007 on the system of the European Communities' own resources.
The budget of the EU is financed wholly from own resources in order to ensure the orderly development of the Union's policies. There are three categories of own resources: "traditional own resources", the own resource based on value added tax (VAT) and the own resource based on gross national income (GNI). Other revenue sources include taxes paid by officials, fines imposed on firms by the Community and interest on late payments.
Own resources ceiling
The own resources ceiling is maintained at 1.24% of the sum of all the EU Member States' GNIs. The ceiling on annual appropriations for payments is set at 1.31% of that figure. Own resources finance all the expenditure entered in the EU's general budget. Any surpluses are carried over to the following financial year.
Traditional own resources
Traditional own resources consist of Common Customs Tariff duties and of levies under the common organisation of the market for sugar ("sugar" levies). Member States may retain, by way of collection costs, 25% of the amounts raised.
The own resource based on VAT are levied on Member States' VAT bases, which have been harmonised for this purpose.
The maximum rate of call of the VAT resource is 0.30%. The maximum VAT base to be taken into account in calculating the rate of call is set at 50% of each Member State's GNI ("capping of the VAT resource"). For the period 2007-2013 the rate of call of the VAT resource is set at 0.225% for Austria, 0.15% for Germany and 0.10% for the Netherlands and Sweden.
The resource based on GNI
In the light of the revenue generated by the other own resources, the GNI resource is based on the application of a uniform rate to the sum of the GNIs of all the Member States.
For the period 2007-2013, two Member States will benefit from a gross reduction in their annual GNI contribution: an annual reduction of EUR 605 million for the Netherlands and of EUR 150 million for Sweden.
Correction in favour of the United Kingdom
The correction in respect of budgetary imbalances in the United Kingdom is calculated on the basis of the difference between the share of the UK VAT base in the EU's total VAT base and the share of the United Kingdom in total allocated expenditure.
Germany, Austria, the Netherlands and Sweden are entitled to a reduction in their share of the financing of the correction in favour of the United Kingdom, which is reduced to one quarter of its normal value.
Collection of own resources
The method for collecting own resources will continue to be determined by national provisions. The Commission will carry out a regular examination of those provisions. The Member States will regularly inform the Commission of any anomalies having a financial impact with respect to collection.
|Act||Entry into force - Date of expiry||Deadline for transposition in the Member States||Official Journal|
|Decision 2007/436/EC, Euratom||-||-||OJ L 163 of 23.6.2007|