System of own resources of the European Union [EU Legislation in Progress]

Written by Alina Dobreva (1st edition).

On 22 December 2021, the European Commission announced its proposal for the introduction of new own resources. The underlying objective is to decrease the share of own resources based on gross national income (GNI) in the revenue mix while preserving existing long-term EU policy commitments. The initiative also seeks to secure the necessary resources to cover new budgetary expenditures, such as the repayments of the debt arising from the Next Generation EU recovery fund and the recently adopted Social Climate Fund. Russia’s war of aggression against Ukraine has generated further needs for additional funds to finance support for Ukraine, for Ukrainian refugees in the EU, and for sectors of the EU economy severely affected by the war. The 2021 Commission proposal on own resources included the extended emissions trading scheme and a carbon border adjustment mechanism, and reallocated profits of very large multinational companies (on the basis of Pillar 1 of the OECD/G20 agreement). Parliament adopted a legislative resolution approving that proposal.

On 20 June 2023, the Commission put forward an adjusted package for the next generation of own resources, amending its previous proposal and completing its proposal by increasing the ETS call rate and introducing a temporary statistical own resource based on company profits. The proposal is subject to a formal re-consultation of Parliament.

Versions

• September 2023: System of own resources of the European Union (1st edition)