2009/0068(CNS) European system of national and regional accounts (ESA 95): allocation of financial intermediation services indirectly measured (FISIM) for the establishment of the gross national income (GNI) for the purposes of the EU budget and its own resources
Proposal for a decision
The allocation of financial intermediation services indirectly measured pursuant to 1 OJ L 253, 7.10.2000, p. 42. 2 OJ L 163, 23.6.2007, p. 17. article 1 shall apply for the purposes of decision 200/597/EC, Euratom from 1 January 2005 to 31 December 2006
Proposal for a decision
The allocation of financial intermediation services indirectly measured pursuant to Article 1 shall apply for the purposes of Decision 2007/436/EC, Euratom from 1 January 20
07. The proposal of the Commission envisages proceeding to the allocation of FISIM for the establishment of GNI of Member States for the purposes of the Union's budget and its own resources. FISIM - "financial intermediation services indirectly measured"- represent a part of the production of financial institutions which is not delivered under the form of direct sales of services with a fixed price, but by means of charging a higher rate of interest for loans than the one used for deposits. The method for the allocation of FISIM within the system of national and regional accounts (ESA 95) has been defined in European legislation since 1998 and should have be implemented from 2005 onwards1. However, it was since the beginning foreseen that the allocation of FISIM for the establishment of GNI for purposes of the Union's budget and its system of own resources would depend on a decision by unanimity of the Council, under proposal of the Commission after the opinion of the EP2. In fact, it was considered necessary to go through a period of trial in order to evaluate the accuracy of the methods and rules defined and test whether the allocation would indeed yield more reliable results for the correct measurement of the economic activity concerned. At the outcome of this trail period a decision would then be taken, according to the procedure described above, concerning the allocation of FISIM for the establishment of GNI. The Commission considers that the results of that trial period are satisfactory and has thus proposed to proceed to the allocation of FISIM for the establishment of GNI. The Commission considers that this allocation should be made retroactively from 1 January 2005, date of the entry into force of the Commission Regulation (EC) No 1889/2002 mentioned above. This means, in fact, that two different periods, covered by two different decisions on own resources, would be considered: - from 1 January 2005 to 31 December 2006, the allocation would be applied for the purposes of Decision 2000/597/EC, Euratom; 1 It was first defined in Council Regulation (EC) No 2223/96 of 25 June 1996, amended and completed by Council Regulation (EC) No 448/1998 of 16 February, and it was implemented by Commission Regulation (EC) No 1889/2002 of 23 October 2002, which foresaw its implementation from 1 January 2005. In practice, only in autumn 2008 did all Member States allocate FISIM in ESA 95 data transmission. 2 This results from a specific provision in article 8(1) of regulation (EC) No 448/98 mentioned, as well as from article 2(7) of both the decisions " own resources" of 2000 and 2007 (the allocation of FISIM would increase GNI by more than 1% in average, which can be considered as "significant changes in GNI" as provided for in that provision). - from 1 January 2007 onwards, it would apply for the purposes of Decision Decision 2007/436/EC, Euratom. The system proposed by the Commission is logical and coherent with the different stages of the European legislation in this area, and could be accepted by Parliament. Indeed, the retroactive allocation of FISIM for the establishment of GNI would yield to more effective data and would have a positive impact in the calculation of Member States estimated own resources contributions. As such, it would also modify the ceilings for commitments and payments foreseen in the multiannual financial framework. However, the proposed retroactive application from 1 January 2005, although in theory commendable, has given birth to divergences amongst Member States, which do not agree on the exact extent of the retroactivity of the decision, and could be open to legal challenges. Indeed, it seems that the only possibility for reaching an agreement between all Member States is that no retroactive application of the allocation of FISIM be considered. The allocation would then take place only from the year of the entrance into force of the decision on, which means from 1 January 2010 on. In this context, the rapporteur considers that the best thing to do is to propose that the allocation of FISIM to the GNI starts only on the 1 January 2010, thus avoiding conflicts between Member States and possible legal challenges. In fact, the rapporteur considers that the priority for the EP is that the allocation of FISIM be properly done from 2010 on, in order to obtain a more accurate calculation of the GNI.
2011/0183(CNS) System of own resources of the EU
Recital 8c (new)
Recital 8d (new)
Recital 8e (new)
High Level Group should pave the way for possible reforms be agreed and become operational for the period covered by the next MFF. Article 311 of the Treaty on the Functioning of the European Union brings two significant changes to the legal provisions related to the EU own resources. Firstly, it provides for the possibility to establish new or to abolish existing own resources. Secondly, it allows for the Council to lay down implementing measures for the Union’s own resources, at the condition that this is provided for in the adopted decision laying down the provisions relating to the system of own resources. Article 311 TFEU also sets out the special legislative procedure for the adoption of the Own Resources Decision: the Council shall act unanimously and after consulting the European Parliament. The Commission’s proposal made full use of these new Treaty provisions. It proposed the abolition of the existing VAT-based resources and the creation of two genuine own resources, a new VAT and an FTT own resource, thereby reducing the share of Member States’ GNI contributions to a maximum of 40% of total EU revenue. The Commission also proposed to replace all rebates and correction mechanisms by a system of lump sums to be applied for the period 2014-2020. Last but not least, the Commission’s proposal reduced the collecting costs to a more realistic proportion of 10%, to be compared to 25% in the 2007-2013 MFF period. The overwhelming majority of the European Parliament has strongly supported the Commission’s proposals from the outset, as it considered that it provided a solid basis for a reform of the financing of the EU budget leading to a system of genuine, clear, simple and fair own resources. However the Council did not consider, with the attention they deserved, the Commission’s proposals. As regards especially the proposals on the two new own resources, no progress was achieved: the proposed reform of the VAT was not accepted on the grounds that it needed further work; the FTT under enhanced cooperation has not yet been adopted and there is no commitment on whether it can provide the base for a new own resource for the EU budget. Consequently, the present draft Council decision aims at implementing the European Council conclusions of 7 and 8 February 2013 and modifies the existing ORD on the following points: • Change of the own resources ceiling for payment appropriations to 1,23% of EU GNI (as compared to 1,24% until now), and for commitment appropriations to 1,29% of EU GNI (as compared to 1,31% until now); • Change of the percentage of collection costs Member States retain from traditional own resources to 20% (as compared to 25% until now); • Because the proposal to reform the VAT did not gain support in the Council, the provisions remain as they stand in the current ORD; • The UK rebate is maintained, as well as the rebates on the rebate for Austria, Germany, the Netherlands and Sweden and the reduced VAT-rates of call for DE, NL and SE; In addition NL, SE and DK will have lump-sum rebates for the duration of the next MFF, while AT will have one only for the first three years (until 2016); • Insertion of a provision allowing for laying down implementing measures. The European Parliament has already expressed its disappointment that the Council has not been able to make any progress on the reform of the own resources system on the basis of the Commission’s legislative proposals and despite the continuous pressure from the side of the European Parliament. Acknowledging the limited legislative power that is granted to the European Parliament under the consultation procedure, your rapporteurs propose a number of amendments to the Council’s draft, in order to reinstate the long-standing political position of the Parliament on own resources. Most importantly, these amendments also aim at reflecting the high importance that the Parliament attaches to the establishment of the High-Level group on own resources and the future steps that need to be taken towards a successful reform of the own resources system for the period covered by the next multiannual financial framework. Your rapporteurs wish to emphasize the high expectations that the Parliament places on the High Level Group on Own Resources, which should be convened without any delay, in order to comply with the objectives and the calendar set in the joint declaration establishing the High Level Group on Own resources, annexed to the MFF (2014-2020) regulation. Joint Declaration on Own Resources 1. necessary to attain its objectives and carry through its policies; it also stipulates that , without prejudice to other revenue, the budget shall be financed wholly from own resources. Article 311 al. 3 indicates that the Council, acting in accordance with a special legislative procedure, shall unanimously and after consulting the European Parliament adopt a decision on the system of own resources and that, in that context, the Council may establish new categories of own resources or abolish an existing category. 2. Own Resources system of the Union. At its meeting of 7/8 February, the European Council agreed that Own Resources arrangements should be guided by the overall objectives of simplicity, transparency and equity. In addition, the European Council called on the Council to continue working on the proposal of the Commission for a new own resource based on value added tax (VAT). It also invited the Member States participating in the enhanced cooperation in the area of financial transaction tax (FTT) to examine if it could become the base for a new own resource for the EU budget. 3. will be convened, composed of members appointed by the three institutions. It will take into account all existing or forthcoming input which may be brought by the three European institutions and by National Parliaments. It should draw on appropriate expertise, including from national budgetary and fiscal authorities as well as independent experts. 4. the overall objectives of simplicity, transparency, equity and democratic accountability. A first assessment will be available at the end of 2014. Progress of the work will be assessed at political level by regular meetings, at least once every six months. 5. assess the outcome of this work. 6. Resource initiatives are appropriate. This assessment will be done in parallel to the review referred to in Article 1a of the MFF Regulation with a view to possible reforms to be considered for the period covered by the next multiannual financial framework.