EU revenue in 2020

Currently, the bulk of revenue is provided by a GNI-based resource and a VAT-based resource, which Member States perceive as national contributions rather than EU own resources. In 2020, these two resources accounted jointly for more than three quarters of EU financing (see Figure 7). According to a number of analysts and stakeholders, including the European Parliament, the predominant role of national contributions promotes a focus in budgetary negotiations on Member States’ net balances and programmes with geographically pre-allocated expenditure. In the MFF negotiations, Parliament managed to obtain a roadmap for the introduction of other new own resources in addition to the one linked to non-recycled plastic waste. The additional new own resources should cover at least the repayment costs of NGEU.