REPORT on the proposal for a Council decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union
04.11.2022 - (COM(2021)0570 – C9‑0034/2022 – 2021/0430(CNS)) - *
Committee on Budgets
Rapporteurs: José Manuel Fernandes, Valérie Hayer
- DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
- EXPLANATORY STATEMENT
- OPINION OF THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS
- LETTER OF THE COMMITTEE ON THE ENVIRONMENT, PUBLIC HEALTH AND FOOD SAFETY
- LETTER OF THE COMMITTEE ON CONSTITUTIONAL AFFAIRS
- PROCEDURE – COMMITTEE RESPONSIBLE
- FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a Council decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union
(COM(2021)0570 – C9‑0034/2022 – 2021/0430(CNS))
(Special legislative procedure – consultation)
The European Parliament,
– having regard to the Commission proposal to the Council (COM(2021)0570),
– having regard to the Commission Communication on The next generation of own resources for the EU Budget (COM(2021)0566),
– having regard to Article 311 of the Treaty on the Functioning of the European Union and Article 106a of the Treaty establishing the European Atomic Energy Community, pursuant to which the Council consulted Parliament (C9‑0034/2022),
– having regard to the Interinstitutional Agreement between the European Parliament, the Council and the European Commission of 16 December 2020 on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap for the introduction of new own resources[1],
– having regard to its legislative resolution of 16 September 2020 on the draft Council decision on the system of own resources of the European Union[2],
– having regard to its amendments adopted on 22 June 2022 on the proposal for a directive revising the EU Emissions Trading System[3],
– having regard to its amendments adopted on 22 June 2022 on the proposal for a regulation establishing a carbon border adjustment mechanism[4],
– having regard to Rule 82 of its Rules of Procedure,
– having regard to the position in the form of amendments of the Committee on Economic and Monetary Affairs,
– having regard to the letters from the Committee on the Environment, Public Health and Food Safety and the Committee on Constitutional Affairs,
– having regard to the report of the Committee on Budgets (A9-0266/2022),
1. Approves the Commission proposal as amended;
2. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;
3. Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;
4. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Amendment 1
Proposal for a regulation
Recital 1 a (new)
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Text proposed by the Commission |
Amendment |
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(1a) This Decision constitutes an important step, in accordance with the legally binding Interinstitutional Agreement of 16 December 2020, for the implementation of a roadmap of new own resources; it is to be followed up by additional and complementary initiatives, which will make sure that the new proceeds are at least sufficient for the payment of the interest and the principal of NGEU debts and that the distributive financial implications of the basket are acceptable to all Member States. An adequate amount of new own resources has to ensure sustainable financing of the Union budget on a long-term basis including for new Union priorities and repayment of the European Union Recovery Instrument in order to avoid cuts to existing EU programmes and policies. |
Amendment 2
Proposal for a regulation
Recital 2 a (new)
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Text proposed by the Commission |
Amendment |
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(2a) There is a need to increase the level of income through new own resources to cater for NGEU repayment costs and the Social Climate Fund which is to be integrated into the MFF as well as to contribute to the long term achievement of the Union’s policy goals. However, legally and technically, the three new own resources will constitute general income in full compliance with the principle of universality of revenue. |
Amendment 3
Proposal for a regulation
Recital 2 b (new)
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Text proposed by the Commission |
Amendment |
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(2b) The Commission needs to take further timely actions if the proposed new own resources are not adopted or do not generate the anticipated level of revenue for the Union budget. In line with the legally binding Interinstitutional Agreement of 16 December 2020, the Commission is expected to present a proposal for a second basket of new own resources by the end of 2023, which could include a financial transaction tax and an own resource linked to the corporate sector. |
Amendment 4
Proposal for a decision
Recital 5
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Text proposed by the Commission |
Amendment |
(5) To avoid an excessively regressive impact on contributions from the emissions trading, a maximum contribution should be established for eligible Member States. For the period from 2023 to 2027, Member States are eligible if the gross national income per capita, measured in purchasing power standard and calculated on the basis of Union figures for 2020 is below 90% of the EU average. For the period from 2028 to 2030, the gross national income per capita in 2025 should be used. The maximum contribution should be established by comparing Member States’ shares in the total emission trading based own resource with the shares of those Member States in the Union gross national income. A minimum contribution should be established for all Member States if their share of the total amount of ETS-based own resources is lower than 75% of their share in the Union gross national income. |
(5) To avoid an excessively regressive impact on contributions from the emissions trading, a maximum contribution should be established for eligible Member States until 2030. For the period from 2023 to 2027, Member States are eligible if the gross national income per capita, measured in purchasing power standard and calculated on the basis of Union figures for 2020 is below 90% of the EU average. For the period from 2028 to 2030, the gross national income per capita in 2025 should be used. The maximum contribution should be established by comparing Member States’ shares in the total emission trading based own resource with the shares of those Member States in the Union gross national income. A minimum contribution should be established for all Member States if their share of the total amount of ETS-based own resources is lower than 75% of their share in the Union gross national income. |
Amendment 5
Proposal for a regulation
Recital 7
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Text proposed by the Commission |
Amendment |
(7) In October 2021, the Organisation for Economic Co-operation and Development and the G20 Inclusive Framework on Base Erosion and Profit Shifting reached an agreement on the allocation to participating market jurisdictions of 25% of residual profits of large multinational enterprises above the profitability threshold of 10% (‘OECD/G20 IF Pillar 1 Agreement’). The own resource should consist in applying a uniform call rate to the share of residual profits of the multinational enterprises, reallocated to Member States [pursuant to the Directive on implementation of the global agreement on re-allocation of taxing rights.] |
(7) In October 2021, the Organisation for Economic Co-operation and Development and the G20 Inclusive Framework on Base Erosion and Profit Shifting reached an agreement on the allocation to participating market jurisdictions of 25% of residual profits of large multinational enterprises above the profitability threshold of 10% (‘OECD/G20 IF Pillar 1 Agreement’). The own resource should consist in applying a uniform call rate to the share of residual profits of the multinational enterprises, re-allocated to Member States [pursuant to the Directive on implementation of the global agreement on re-allocation of taxing rights, as soon as adopted]. |
Amendment 6
Proposal for a regulation
Recital 7 a (new)
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Text proposed by the Commission |
Amendment |
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(7a) The OECD aims for the Multilateral Convention implementing the OECD/G20 IF Pillar 1 Agreement to enter into force in 2024. However, as the successful implementation of the OECD/G20 IF Pillar 1 Agreement at international level by certain key third countries is not yet guaranteed, it is necessary for the Commission and the Member States to regularly reassess the situation. In the event of clear lack of progress by end of 2023, the Commission should submit a legislative proposal for a digital levy or a similar measure. Such a digital levy or proceeds resulting from a similar measure should then be considered an own resource of the Union in order to generate revenues by 2026. |
Amendment 7
Proposal for a regulation
Recital 8 a (new)
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Text proposed by the Commission |
Amendment |
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(8a) Revenue for the Union budget on the basis of the Commission's proposals for the implementation of the OECD/G20 IF Pillar 1 Agreement is expected to be between EUR 2,5 billion and EUR 4 billion per year. |
Amendment 8
Proposal for a regulation
Recital 8 b (new)
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Text proposed by the Commission |
Amendment |
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(8b) Following consultation of the European Parliament, the adoption of this Decision requires unanimity in the Council. This Decision should enter into force following the completion by the Member States of the procedures for its approval in accordance with their respective constitutional requirements. |
Amendment 9
Proposal for a decision
Article 1 – paragraph 1 – point 1 – point b
Decision (EU, Euratom) 2020/2053
Article 2 – paragraph 1 – point f
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Text proposed by the Commission |
Amendment |
(f) the application of a uniform call rate equal to 75% of the revenues from the sale of certificates of the carbon border adjustment mechanism established by Regulation (EU) [XXX] of the European Parliament and of the Council18 . |
(f) the application of a uniform call rate equal to 100% of the revenues from the sale of certificates of the carbon border adjustment mechanism established by Regulation (EU) [XXX] of the European Parliament and of the Council18 . |
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18 Regulation (EU) [XXX] of the European Parliament and of the Council on the carbon border adjustment mechanism. |
18 Regulation (EU) [XXX] of the European Parliament and of the Council on the carbon border adjustment mechanism. |
Amendment 10
Proposal for a regulation
Article 2 a (new)
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Text proposed by the Commission |
Amendment |
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Article 2a Review 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 shall 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. |
EXPLANATORY STATEMENT
Context, general appreciation of the Commission proposal and procedural outlook
It is a long-standing and well-established position of the EP that the own resources system should be thoroughly reformed in order to mitigate the predominance of the GNI-based contributions in the financing of the budget by introducing new, preferably ‘genuine’ own resources and to diversify and better align these revenue sources with EU policy priorities. The need to mobilise fresh income in order to repay the debts incurred under the NGEU scheme and to help finance the new Social Climate Fund, re-confirms and even strengthens this rationale.
Since the coming into force of the Interinstitutional Agreement in December of 2020, the roadmap for the introduction of new own resources has served as a binding guideline for the deliberations in the EP. The present macroeconomic and policy environment, marked by high inflation and geopolitical turmoil, weighs heavily on the decision-making procedures in the EU but should also motivate the institutional actors to stick to the agreements and follow through with the commitments taken with vigour and determination.
Against this background, your co-rapporteurs consider the Commission proposal to amend the Own Resources Decision - despite some regrettable delays - to be a faithful and accurate operationalisation of the first step spelled out in the IIA roadmap towards the introduction of new own resources. The substance of the proposal, which integrates the own resources with the Recovery efforts and the Green Deal objectives is fully in line with standing EP positions.
We see, therefore, a strong justification and a timely opportunity to swiftly endorse the Commission proposal with only a few amendments. The present legislative report intends to focus exclusively on the scope of the roadmap’s first batch. On this basis, the Council should rapidly adopt the decision without causing additional delays.
The rapporteurs wish to focus any amendments on the Own Resources Decision to the minimum necessary for ensuring full consistency with the IIA roadmap, with previously voted positions on own resources and with the EP positions on the related sectoral files.
In order to further expand the EP’s input to the broader debate on the future financing of the EU budget, the BUDG Committee has requested authorisation to draw up an own INI report. It will be launched shortly and will allow members and groups to express positions and explore options which are beyond the scope of the present consultation procedure.
The issues raised can then also be discussed with the Council and the Commission in the framework of the Own Resources regular dialogue. However, the co-rapporteurs’ immediate priority is to quickly conclude this consultation procedure adopting a lean and straightforward legislative opinion in order to encourage the Council to proceed quickly.
The new own resources: a balanced basket with multiple policy merits
In its Amending Decision, 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 CBAM certificates and an own resource based on the OECD/G20 ‘Pillar One’ agreement in the area of corporate taxation.
The ETS-based own resource will make sure that the EU budget receives a fair share of the proceeds that are generated by the EU’s flagship climate instrument. It has long been a demand of the EP and many stakeholders, that at least part of the revenue that is created by the implementation of EU level legislation should accrue to the EU budget to finance its common policies - and not least its mainstreamed climate policies.
The co-rapporteurs insist that the Union should respect its commitment to repay the NextGeneration EU debt through the introduction of new own resources, including the ETS-based own resource, in order to avoid dramatic cuts in EU programmes in future MFFs. They recall that the ETS is the most important source of revenue in this regard. Moreover, the ETS revenues (including those from the extension to new sectors) entering the EU budget as own resources cannot be earmarked to any specific type of expenditure. In addition, the new Social Climate Fund should be integrated as an expenditure programme in EU budget and within the MFF and be fully subject to the annual procedure and therefore should not be financed by assigned revenue. Legislators should avoid proliferation of funds which are not financed by own resources which is to the detriment of budget unity.
The ‘solidarity’ mechanism introduced by the Commission is meant to prevent ‘outliers’ in the ETS contributions, which could incite the concerned Member State to veto the entire decision. While it is equivalent to a ‘correction mechanism’ on the revenue side and against a strict ‘polluter pays’ logic, this exception is limited in time until 2030 and could thus be accepted from a viewpoint of procedural pragmatism and in the interest of achieving unanimity in Council.
The CBAM own resources will yield only moderate amounts after a phasing-in period. Nevertheless, these are by their very nature highly genuine EU revenues, incurred at the external borders and anchored in common climate, trade and customs policies. Should the sale of CBAM certificates decline or even become obsolete in a longer term prospect, any loss of revenue from the CBAM own resource would be outweighed by the additional income from ETS auctioning in the sectors concerned within the EU which would presumably no longer benefit from free allocations.
The Commission’s proposes a call rate of 75% - implying a retention rate of 25% (“collection costs”) for Member States. The rapporteurs recall that the EP favoured a single, centralised CBAM authority. Depending on the eventual distribution of tasks and responsibilities between the CBAM Authority and the Member States in the levying, collecting and making available of the revenues, the percentage of the proceeds retained as “collection costs” could be lower than the 25% proposed by the Commission. The level of collection costs retained (if any) and other legal issues may have to be revisited once there is certainty about the role of the Authority. A level of 10% for collection costs (i.e. a call-rate of 90%) would correspond to the traditional share retained for the customs duties/traditional own resources.
In the EP position on the CBAM regulation, it was furthermore stated that the industries in least developed countries which will be affected by the phasing out of free ETS-allocations in the sectors covered by CBAM, should benefit from support from the EU budget for their decarbonisation efforts. The amounts necessary should be mobilised through decisions on the expenditure side and do not necessitate any earmarking of revenue. The Commission proposal is entirely in line with the EP position.
The OECD/G20 ‘Pillar One’-based own resource replaces what used to be referred to a digital levy in the IIA roadmap. A share of 15% of the residual profits of big and profitable Multinational Enterprises, which are re-allocated to each Member State, will be defined as an own resource. The EU will thereby benefit from the progress it has itself spearheaded, in the realm of international corporate taxation. The timing of the introduction still depends on the adoption of a directive, which will harmonise and operationalise the OECD/G20 inclusive framework agreement at EU level.
The overall revenue estimates of this basket, once at cruising speed, i.e. all underlying sectoral policies fully in force and phased in, roughly amount to between EUR 16 and 18 billion per year. Depending on the final shape and form of the ETS and CBAM - and the evolution of the carbon price - the level of revenue could be even lower. Therefore, it will be crucial that additional, complementary initiatives follow in compliance with the IIA.
OPINION OF THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS (12.10.2022)
for the Committee on Budgets
on the proposal for a Council decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union
(COM(2021)0570 – C9‑0034/2022 – 2021/0430(CNS))
Rapporteur for opinion: Rasmus Andresen
SHORT JUSTIFICATION
The rapporteur wishes, with these few amendments proposed, to make the own resources decision, in terms of OECD pillar one negotiations, future proof and up to date with the latest developments at European and international level. The amendments suggested reflect the latest compromise text in Council on the directive on ensuring a global minimum level of taxation for multinational groups in the Union, most in particularly the addition of recitals 21a and 21b and article 55a. The amendments also reflect the earlier positions adopted at European Parliament level, most notably the own initiative report on digital taxation.
AMENDMENTS
The Committee on Economic and Monetary Affairs calls on the Committee on Budgets, as the committee responsible, to take into account the following amendments:
Amendment 1
Proposal for a decision
Recital 1 a (new)
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Text proposed by the Commission |
Amendment |
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(1a) This Decision constitutes an important step in the implementation of the roadmap for the introduction of new own resources. It should be followed up by additional and complementary initiatives to ensure that proceeds from new own resources are at least sufficient for the repayments of the interest and principal of debts related to NextGenerationEU and that the distributive financial implications are acceptable to all Member States. |
Amendment 2
Proposal for a decision
Recital 2 a (new)
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Text proposed by the Commission |
Amendment |
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(2a) In view of the commitment taken in the Interinstitutional Agreement of 16 December 2020 and the need to present an adequate amount of new own resources for the repayment of the European Union Recovery Instrument, the Commission committed to present a proposal for a second basket of new own resources by the end of 2023. In this context, as reiterated in the Commission communication of 20 May 2021 on Business Taxation for the 21st century, the Commission committed to propose additional new own resources, which could include a Financial Transaction Tax and an own resource linked to the corporate sector. |
Amendment 3
Proposal for a decision
Recital 2 b (new)
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Text proposed by the Commission |
Amendment |
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(2b) There is a need to increase the level of income through new own resources to cater for the repayment costs of NextGenerationEU and the Social Climate Fund which is to be integrated into the MFF. However, legally and technically, the three new own resources will constitute general income in full compliance with the principle of universality of revenue. |
Amendment 4
Proposal for a decision
Recital 5
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Text proposed by the Commission |
Amendment |
(5) To avoid an excessively regressive impact on contributions from the emissions trading, a maximum contribution should be established for eligible Member States. For the period from 2023 to 2027, Member States are eligible if the gross national income per capita, measured in purchasing power standard and calculated on the basis of Union figures for 2020 is below 90% of the EU average. For the period from 2028 to 2030, the gross national income per capita in 2025 should be used. The maximum contribution should be established by comparing Member States’ shares in the total emission trading based own resource with the shares of those Member States in the Union gross national income. A minimum contribution should be established for all Member States if their share of the total amount of ETS-based own resources is lower than 75% of their share in the Union gross national income. |
(5) To avoid an excessively regressive impact on contributions from the emissions trading, a maximum contribution should be established for eligible Member States until 2030. For the period from 2023 to 2027, Member States are eligible if the gross national income per capita, measured in purchasing power standard and calculated on the basis of Union figures for 2020 is below 90% of the EU average. For the period from 2028 to 2030, the gross national income per capita in 2025 should be used. The maximum contribution should be established by comparing Member States’ shares in the total emission trading based own resource with the shares of those Member States in the Union gross national income. A minimum contribution should be established for all Member States if their share of the total amount of ETS-based own resources is lower than 75% of their share in the Union gross national income. |
Amendment 5
Proposal for a decision
Recital 7
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Text proposed by the Commission |
Amendment |
(7) In October 2021, the Organisation for Economic Co-operation and Development and the G20 Inclusive Framework on Base Erosion and Profit Shifting reached an agreement on the allocation to participating market jurisdictions of 25% of residual profits of large multinational enterprises above the profitability threshold of 10% (‘OECD/G20 IF Pillar 1 Agreement’). The own resource should consist in applying a uniform call rate to the share of residual profits of the multinational enterprises, re-allocated to Member States [pursuant to the Directive on implementation of the global agreement on re-allocation of taxing rights.] |
(7) In October 2021, the Organisation for Economic Co-operation and Development and the G20 Inclusive Framework on Base Erosion and Profit Shifting reached an agreement on the allocation to participating market jurisdictions of 25% of residual profits of large multinational enterprises above the profitability threshold of 10% (‘OECD/G20 IF Pillar 1 Agreement’). The own resource should consist in applying a uniform call rate to the share of residual profits of the multinational enterprises, re-allocated to Member States [pursuant to the Directive on implementation of the global agreement on re-allocation of taxing rights.] Despite initial delays, the Union should strive to implement both parts of the OECD agreement as soon as possible. |
Amendment 6
Proposal for a decision
Recital 7 a (new)
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Text proposed by the Commission |
Amendment |
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(7a) The successful implementation of the OECD/G20 IF Pillar 1 Agreement at international level by certain key third countries is not guaranteed. As stated by the ECOFIN, it is necessary for the Commission and the Member States to regularly reassess the situation and, if appropriate, submit a legislative proposal to introduce a digital levy or similar measure in the absence of progress on the implementation of the OECD/G20 IF Pillar 1 Agreement. In the event of clear lack of progress by end of 2023, a digital levy or similar proposal should be submitted. The OECD aims for the Multilateral Convention implementing the OECD/G20 IF Pillar 1 Agreement to enter into force in 2024. Therefore, unless the OECD timeline changes due to technical difficulties of the file, such a legislative proposal should be submitted in the absence of ratification of that Multilateral Convention by a critical mass of countries by 31 December 2024. Such a digital levy or similar measure should then be considered an own resource of the Union in order to generate revenues by 2026. However, a global agreement is strongly preferred over unilateral action by the Union. |
Amendment 7
Proposal for a decision
Recital 8 a (new)
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Text proposed by the Commission |
Amendment |
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(8a) Revenue for the Union budget on the basis of the Commission's proposals for the implementation of the OECD/G20 IF Pillar 1 Agreement is expected to be between EUR 2,5 billion and EUR 4 billion per year. |
Amendment 8
Proposal for a decision
Recital 8 b (new)
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Text proposed by the Commission |
Amendment |
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(8b) Following consultation of the European Parliament, the adoption of this Decision requires unanimity in the Council. This Decision should enter into force following the completion by the Member States of the procedures for its approval in accordance with their respective constitutional requirements. |
Amendment 9
Proposal for a decision
Article 1 – paragraph 1 – point 1 – point b
Decision (EU, Euratom) 2020/2053
Article 2 – paragraph 1 – point f
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Text proposed by the Commission |
Amendment |
“(f) the application of a uniform call rate equal to 75% of the revenues from the sale of certificates of the carbon border adjustment mechanism established by Regulation (EU) [XXX] of the European Parliament and of the Council3.“ |
“(f) the application of a uniform call rate equal to [X%] of the revenues from the sale of certificates of the carbon border adjustment mechanism established by Regulation (EU) [XXX] of the European Parliament and of the Council3.“ |
_________________ |
_________________ |
3 Regulation (EU) [XXX] of the European Parliament and of the Council on the carbon border adjustment mechanism. |
3 Regulation (EU) [XXX] of the European Parliament and of the Council on the carbon border adjustment mechanism. |
Amendment 10
Proposal for a decision
Article 1 – paragraph 1 – point 1 – point c
Decision (EU, Euratom) 2020/2053
Article 2 – paragraph 1 – point g
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Text proposed by the Commission |
Amendment |
“(g) the application of a uniform call rate of 15% to the share of residual profit of multinational enterprises reallocated to Member States pursuant to [the Directive on implementation of the global agreement on re-allocation of taxing rights4.]” |
“(g) the application of a uniform call rate of 15% to the share of residual profit of multinational enterprises reallocated to Member States pursuant to [the Directive on implementation of the global agreement on re-allocation of taxing rights4], provided that the OECD/G20 IF Pillar 1 Agreement has been successfully implemented by a critical mass of countries by 31 December 2024.” |
Amendment 11
Proposal for a decision
Article 1 – paragraph 1 – point 1 – point c a (new)
Decision (EU, Euratom) 2020/2053
Article 2 – paragraph 1 – subparagraph 1 a (new)
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Text proposed by the Commission |
Amendment |
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(ca) in paragraph 1, the following subparagraph is added: |
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“Where first subparagraph, point (g), does not apply, revenue from the application of a digital levy or similar measure in Member States pursuant to [the Directive on introducing a digital levy or similar measure in the Union] shall constitute an own resource entered in the Union budget.” |
Amendment 12
Proposal for a decision
Article 2 – paragraph 6
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Text proposed by the Commission |
Amendment |
Article 1(1), point (c), shall apply from |
Article 1(1), points (c) and (ca), shall apply from |
Amendment 13
Proposal for a decision
Article 2 – paragraph 7
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Text proposed by the Commission |
Amendment |
the first day of the date of application of the [Directive on implementation of the global agreement on re-allocation of taxing rights] or |
the first day of the date of application of the [Directive on implementation of the global agreement on re-allocation of taxing rights] or the first day of the date of application of [the Directive on introducing a digital levy or similar measure in the Union] or |
PROCEDURE – COMMITTEE ASKED FOR OPINION
Title |
Proposal for a Council Decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union |
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References |
COM(2021)0570 – C9-0034/2022 – 2021/0430(CNS) |
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Committee responsible Date announced in plenary |
BUDG 14.2.2022 |
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Opinion by Date announced in plenary |
ECON 14.2.2022 |
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Rapporteur for the opinion Date appointed |
Rasmus Andresen 25.1.2022 |
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Date adopted |
10.10.2022 |
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Result of final vote |
+: –: 0: |
27 1 1 |
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Members present for the final vote |
Gunnar Beck, Isabel Benjumea Benjumea, Gilles Boyer, Engin Eroglu, Jonás Fernández, Claude Gruffat, Eero Heinäluoma, Stasys Jakeliūnas, Othmar Karas, Georgios Kyrtsos, Aušra Maldeikienė, Pedro Marques, Piernicola Pedicini, Lídia Pereira, Eva Maria Poptcheva, Evelyn Regner, Antonio Maria Rinaldi, Joachim Schuster, Ralf Seekatz, Pedro Silva Pereira, Ernest Urtasun |
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Substitutes present for the final vote |
Esther de Lange, Pascal Durand, Martin Hlaváček, Fulvio Martusciello, Andreas Schwab |
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Substitutes under Rule 209(7) present for the final vote |
Deirdre Clune, Niclas Herbst, Ivan Štefanec |
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FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION
27 |
+ |
PPE |
Isabel Benjumea Benjumea, Deirdre Clune, Niclas Herbst, Othmar Karas, Esther de Lange, Aušra Maldeikienė, Fulvio Martusciello, Lídia Pereira, Andreas Schwab, Ralf Seekatz, Ivan Štefanec |
RENEW |
Gilles Boyer, Pascal Durand, Engin Eroglu, Martin Hlaváček, Georgios Kyrtsos, Eva Maria Poptcheva |
S&D |
Jonás Fernández, Eero Heinäluoma, Pedro Marques, Evelyn Regner, Joachim Schuster, Pedro Silva Pereira |
VERTS/ALE |
Claude Gruffat, Stasys Jakeliūnas, Piernicola Pedicini, Ernest Urtasun |
1 |
- |
ID |
Gunnar Beck |
1 |
0 |
ID |
Antonio Maria Rinaldi |
Key to symbols:
+ : in favour
- : against
0 : abstention
LETTER OF THE COMMITTEE ON THE ENVIRONMENT, PUBLIC HEALTH AND FOOD SAFETY (3.10.2022)
Mr Johan Van Overtveldt
Chair
Committee on Budgets
BRUSSELS
Subject: Opinion on the proposal for a Council decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union (2021/430(CNS))
Dear Mr Chair,
Dear Mr Van Overtveldt,
The coordinators of the Committee on the Environment, Public Health and Food Safety (ENVI) decided on 26 January 2022 that ENVI would provide an opinion on the System of own resources of the European Union (2021/0430(CNS)) in the form of a letter. Therefore, both as ENVI Chair and Rapporteur for this opinion, let me provide you with ENVI’s contribution in the form of resolution paragraphs, which was adopted by ENVI at its meeting[5] of 3 October 2022 and which I kindly request will be taken into account by your committee:
1. Insists that the Next Generation EU Instrument must be accompanied by a credible repayment plan through the establishment of genuine, new EU own resources, in order to avoid that the repayment reduces future Multiannual Financial Frameworks (MFF) and thereby the availability of EU funding for important programmes relating to environment, biodiversity, health and food safety which would negatively impact future generations; believes, furthermore, that a system of own resources as adopted in the MFF 2021-2027 provides an opportunity to make the income side of the Union budget more sustainable and transparent, to make the Union more autonomous and, ultimately, to make better use of the Union budget’s transformative power;
2. Reaffirms its position to support new own resources, in particular those that contribute to the Union’s goals on the environment, health and climate policies, including the implementation of future Union legislation adopted as part of the Fit for 55 package, as well as the Union’s goals to rapidly reduce its dependence on fossil fuels, in particular those coming from Russia, as provided for in the RePowerEU Plan; is of the opinion that the current funding of these areas may prove insufficient;
3. Insists that a well-defined share of the auctioning revenue of the reformed and extended EU Emission Trading System (ETS) as well as a well-defined share of the revenues from the Carbon Border Adjustment Mechanism (CBAM) and Pillar One of the OECD/G20 Agreement should be used as own resources, from 1 January 2023 onwards, to accrue to the Union budget to help cover the borrowing costs as enshrined in [Council Decision (EU, Euratom) .../... amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union] and prevent substantial decreases that would jeopardise Union programmes in the future MFF; underlines that this decision should be followed by the second basket of own resources including but not limited to the initiatives such as the Financial Transaction Tax, a financial contribution linked to the corporate sector or a new common corporate tax base;
4. Highlights that the revenues from the above own resources are not guaranteed; underlines particularly that the implementation of Pillar One of the OECD/G20 Agreement requires the participation of third countries and is not a certainty; calls on the Commission to regularly assess progress of the implementation of Pillar One, and more broadly, all own resources; stresses therefore, that in the instance where own resources acquired do not meet expectations to fulfil the needs of the Union budget, particularly in relation to programmes for environment, biodiversity, health and food safety, that action, in the form of enhanced, new own resources or other means is taken to address these shortcomings;
5. Highlights that revenues derived from climate and environmental EU own resources will decrease as Europe and its trading partners cut emissions and achieve higher levels of circularity; in this respect, calls on the Commission to observe this development closely and provide for additional own resources via a stable, predictable, and enduring stream of EU own resources fit for the Union’s needs;
6. Asserts furthermore that 25% of the expected revenues linked to commercial road transport, commercial buildings and other fuels covered by Chapter IVa [ETS Directive] are to be allocated to the Union budget, and should be complemented by the revenues from the 150 million allowances auctioned in accordance with Article 30d(3) of Directive 2003/87/EC;
7. Underlines that modifications of the current MFF are necessary to reflect Parliament’s strong support for the Fit for 55 package, including on the revised financial envelope of the Social Climate Fund.
8. Recalls that the Recovery and Resilience Facility (RRF) should contribute to the mainstreaming of biodiversity and climate action in Union policies ; notes that several National Recovery and Resilience Plans (NRRPs) contribute to biodiversity and climate action but insists that Member States use the RRF more to improve biodiversity and climate action; stresses the relevance of monitoring the implementation of the measures included in the NRRPs in light of the respect of the ‘do no significant harm’ principle defined in the Taxonomy regulation and enshrined in the RRF Regulation; is of the opinion that more ambitious climate and biodiversity mainstreaming is essential to meet the goals laid out in the European Climate Law, and believes that tackling biodiversity decline in particular deserves and requires increased funding;
9. States that a broader revision of the current MFF is needed as it was already pushed to its limits in its first years; points to the multiple crises and challenges that the Union has been addressing, in particular the war in Ukraine and its repercussions, and the substantial financing needs it has generated; calls, therefore, on the Commission to conduct an in-depth review of the functioning of the current MFF and proceed with a legislative proposal for a comprehensive MFF revision as soon as possible and no later than the first quarter of 2023;
10. Reiterates that, in the absence of harmonised international measures on kerosene taxation, a carbon content-based aviation contribution should be considered as a potential own resource at Union level to provide further incentives for research, development and investment in more efficient, low-carbon aircraft and fuels, to generate additional resources for facilitating a shift towards zero emission transport, especially for intra-EU travelling, and in order to curb growing emissions in aviation, while ensuring a level playing field in the transport sector which takes into account all negative and positive externalities of the different means of transport.
I have sent a similar letter to José Manuel FERNANDES and Valérie HAYER, BUDG co-rapporteurs for the system of Own Resources of the EU.
Yours sincerely,
Pascal Canfin
LETTER OF THE COMMITTEE ON CONSTITUTIONAL AFFAIRS (18.10.2022)
Mr Johan Van Overtveldt
Chair
Committee on Budgets
BRUSSELS
Subject: Opinion on the Proposal for a Council Decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union (COM(2021)0570 – C9‑0034/2022 – 2021/0430(CNS))
Dear Chair,
Under the procedure referred to above, the Committee on Constitutional Affairs (AFCO) decided at its meeting of 17 May 2022 to submit an opinion to your committee. Due to the upcoming INI on the future financing of the Union, the AFCO coordinators proposed to the Committee on 1 September 2022 to send the opinion in the form of a letter.
At its meeting of 17 October 2022, the AFCO Committee considered the matter and adopted its opinion by 22 votes in favour, 6 against and 0 abstentions[6], inviting the Committee on Budgets, as the committee responsible, to incorporate its suggestions into its motion for a resolution.
Yours sincerely,
Salvatore De Meo
SUGGESTIONS
The Committee for Constitutional Affairs (AFCO Committee) welcomes the Commission’s proposal to amend Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union and stresses the need to move swiftly; that proposal, albeit delayed, is in line with the Commission’s commitment to implement the binding roadmap for the introduction of new resources enshrined in the Interinstitutional Agreement of 16 December 2020[7];
The AFCO Committee underlines that more genuine own resources are needed to increase Union’s revenue sources, support Union policies and strengthen the fiscal capacity of the Union; underlines that more genuine own resources should not prompt Member States to reduce national contributions to the Union’s budget;
The AFCO Committee recalls that the Commission’s proposal at stake is only a first step; in line with the conclusions of the Conference on the future of Europe[8], the AFCO Committee calls on the Commission to propose swiftly new genuine and sustainable own resources; the AFCO Committee underlines that such proposals should aim at covering at least the amounts needed to repay principal and interests under Next Generation EU;
In line with the Parliament’s resolution on the call for a Convention for the revision of the treaties[9], the AFCO Committee calls for a discussion directed at how Treaties should be amended so as to give Parliament full budgetary powers;
The AFCO Committee takes note of the fact that the Committee on Budgets will draw in the near future an own INI report to expand the Parliament’s input to the broader debate on the future financing of the EU budget; the AFCO Committee will provide its detailed opinion in the framework of that upcoming INI.
PROCEDURE – COMMITTEE RESPONSIBLE
Title |
Proposal for a Council Decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union |
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References |
COM(2021)0570 – C9-0034/2022 – 2021/0430(CNS) |
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Date Parliament was consulted |
3.2.2022 |
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Committee responsible Date announced in plenary |
BUDG 14.2.2022 |
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Committees asked for opinions Date announced in plenary |
CONT 14.2.2022 |
ECON 14.2.2022 |
ENVI 14.2.2022 |
AFCO 14.2.2022 |
Not delivering opinions Date of decision |
CONT 28.2.2022 |
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Rapporteurs Date appointed |
Valérie Hayer 10.2.2022 |
José Manuel Fernandes 10.2.2022 |
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Discussed in committee |
31.8.2022 |
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Date adopted |
26.10.2022 |
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Result of final vote |
+: –: 0: |
22 1 5 |
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Members present for the final vote |
Rasmus Andresen, Pietro Bartolo, Olivier Chastel, José Manuel Fernandes, Eider Gardiazabal Rubial, Alexandra Geese, Vlad Gheorghe, Valérie Hayer, Niclas Herbst, Moritz Körner, Joachim Kuhs, Camilla Laureti, Janusz Lewandowski, Margarida Marques, Eric Minardi, Siegfried Mureşan, Victor Negrescu, Dimitrios Papadimoulis, Karlo Ressler, Bogdan Rzońca, Nils Torvalds, Nils Ušakovs, Rainer Wieland |
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Substitutes present for the final vote |
Ilan De Basso, Fabienne Keller |
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Substitutes under Rule 209(7) present for the final vote |
Carlo Fidanza, Andrzej Halicki, Simone Schmiedtbauer |
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Date tabled |
4.11.2022 |
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FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE
22 |
+ |
PPE |
José Manuel Fernandes, Andrzej Halicki, Niclas Herbst, Janusz Lewandowski, Siegfried Mureşan, Karlo Ressler, Simone Schmiedtbauer, Rainer Wieland |
RENEW |
Olivier Chastel, Vlad Gheorghe, Valérie Hayer, Fabienne Keller, Nils Torvalds |
S&D |
Pietro Bartolo, Eider Gardiazabal Rubial, Camilla Laureti, Margarida Marques, Victor Negrescu, Nils Ušakovs |
THE LEFT |
Dimitrios Papadimoulis |
VERTS/ALE |
Rasmus Andresen, Alexandra Geese |
1 |
- |
ID |
Joachim Kuhs |
5 |
0 |
ECR |
Carlo Fidanza, Bogdan Rzońca |
ID |
Eric Minardi |
RENEW |
Moritz Körner |
S&D |
Ilan De Basso |
Key to symbols:
+ : in favour
- : against
0 : abstention
- [1] OJ L 433I, 22.12.2020, p. 28.
- [2] Texts adopted, P9_TA(2020)0220.
- [3] Texts adopted, P9_TA(2022)0246.
- [4] Texts adopted, P9_TA(2022)0248.
- [5] The following were present for the final vote: Abir Al‑Sahlani, Mathilde Androuët, Attila Ara‑Kovács, Bartosz Arłukowicz, Simona Baldassarre, Marek Paweł Balt, Aurélia Beigneux, Hildegard Bentele, Sergio Berlato, Monika Beňová, Michael Bloss, Simona Bonafè, Biljana Borzan, Delara Burkhardt, Pascal Canfin, Sara Cerdas, Mohammed Chahim, Asger Christensen, Nathalie Colin‑Oesterlé, Anna Deparnay‑Grunenberg, Estrella Durá Ferrandis, Matthias Ecke, Bas Eickhout, Cyrus Engerer, Agnès Evren, Pietro Fiocchi, Heléne Fritzon, Malte Gallée, Andreas Glück, Catherine Griset, Anja Hazekamp, Krzysztof Hetman, Martin Hojsík, Pär Holmgren, Jan Huitema, Yannick Jadot, Radan Kanev, Ondřej Knotek, Petros Kokkalis, Ewa Kopacz, Joanna Kopcińska, Peter Liese, César Luena, Javi López, Marian‑Jean Marinescu, Liudas Mažylis, Marina Mesure, Tilly Metz, Silvia Modig, Dolors Montserrat, Alessandra Moretti, Ville Niinistö, Ljudmila Novak, Grace O'Sullivan, João Pimenta Lopes, Jessica Polfjärd, Nicola Procaccini, Luisa Regimenti, Frédérique Ries, María Soraya Rodríguez Ramos, Silvia Sardone, Christel Schaldemose, Christine Schneider, Günther Sidl, Ivan Vilibor Sinčić, Maria Spyraki, Eugen Tomac, Nils Torvalds, Véronique Trillet‑Lenoir, Edina Tóth, Alexandr Vondra, Mick Wallace, Pernille Weiss, Sarah Wiener, Michal Wiezik, Tiemo Wölken, Anna Zalewska
- [6] The following were present for the final vote: Salvatore De Meo (Chair and rapporteur for the opinion), Gabriele Bischoff (1st Vice-Chair), Giuliano Pisapia (3rd Vice-Chair), Loránt Vincze (4th Vice-Chair), Gerolf Annemans, Vladimír Bilčík (for Brice Hortefeux), Damian Boeselager, Włodzimierz Cimoszewicz, Nathalie Colin‑Oesterlé (for Rainer Wieland), Gwendoline Delbos‑Corfield, Pascal Durand, Daniel Freund, Isabel García Muñoz (for Domènec Ruiz Devesa), Sandro Gozi, Laura Huhtasaari, Manolis Kefalogiannis (for Esteban González Pons), Petros Kokkalis (for Leila Chaibi), Zdzisław Krasnodębski, Alin Mituța (for Charles Goerens), Victor Negrescu, Nicola Procaccini (for Jacek Saryusz Wolski), Paulo Rangel, Antonio Maria Rinaldi, Helmut Scholz, Sven Simon, Nacho Sánchez Amor (for Pedro Silva Pereira), László Trócsányi, Guy Verhofstadt
- [7] Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new resources, including a roadmap towards the introduction of new own resources (OJ 22.12.2020, L 433 I, p. 28)
- [8] Conference on the future of Europe, proposal 16
- [9] 2022/2705(RSP)