{"id":137766,"date":"2023-06-22T13:14:37","date_gmt":"2023-06-22T11:14:37","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=137766"},"modified":"2023-06-22T13:14:37","modified_gmt":"2023-06-22T11:14:37","slug":"the-european-commission-has-presented-its-proposal-for-the-next-generation-of-own-resources","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/the-european-commission-has-presented-its-proposal-for-the-next-generation-of-own-resources\/","title":{"rendered":"The European Commission has presented its proposal for the next generation of own resources"},"content":{"rendered":"

As committed during the negotiations on the long-term EU budget 2021-2027, the European Commission has completed its proposal for a next generation of own resources. This package includes a new temporary statistical own resource based on company profits.<\/p>\n

\"\"<\/a><\/p>\n

Following the political agreement on the Fit For 55 package, which seeks to ensure EU policies contribute to the climate neutrality of our continent, the Commission also proposes to adjust the own resources proposals based on the Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM) compared to the original proposals from December 2021.<\/p>\n

This proposal completes and updates the package for the next generation of own resources to the budget put forward back in December 2021. Three sources of revenue were proposed back then: one based on revenues from emissions trading (ETS), one drawing on the resources generated by the proposed EU carbon border adjustment mechanism, and one based on the share of residual profits from multinationals that will be re-allocated to EU Member States under the recent OECD\/G20 agreement on a re-allocation of taxing rights (\u201cPillar One\u201d). This is completed today by a statistical own resource linked to the corporate sector. Once in force, this basket of new own resources will ensure an adequate long-term financing of the budget including the repayment of NextGenerationEU.<\/p>\n\n\n\n
\"\"<\/a><\/p>\n

An EU approach to enhance economic security
\n<\/a><\/h4>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

New temporary statistical based own resource on company profits<\/strong><\/p>\n

The European Parliament, the Council and the Commission jointly agreed in 2020 that an own resource linked to the corporate sector should be proposed. The new statistical own resource based on company profits will be temporary, to be replaced by a possible contribution from Business in Europe: Framework for Income Taxation (BEFIT), once proposed and unanimously agreed by all Member States.<\/p>\n

In the meantime, the own resource put forward today will be calculated as 0.5% of the notional EU company profit base, an indicator calculated by Eurostat on the basis of the national accounts statistics.<\/p>\n

It is not a tax on companies, nor does it increase companies’ compliance costs. It will be a national contribution paid by Member States based on the gross operating surplus for the sectors of financial and non-financial corporations, which would help to balance the basket of own resources and further diversify the revenue sources of the EU budget.<\/p>\n

The statistical own resource on company profits would provide revenues as of 2024 of about \u20ac16 billion (2018 prices) per year.<\/p>\n

Adjustment of the ETS own resource<\/strong><\/p>\n

Following the increase in the carbon price to about \u20ac 80 per tonne of CO2 in 2022 (from \u20ac55 in 2021), Member States revenues from the Emissions Trading System (ETS) have doubled in the course of two years to almost \u20ac30 billion in 2022. Prices are expected to remain well above \u20ac55 per tonne of CO2 in the years to come. As compared to its original proposal of December 2021, the Commission proposes to increase the call rate for the ETS-based own resource to 30% from all revenues generated by EU emissions trading, up from 25% originally proposed. This is expected to generate EU budget revenue of about \u20ac7 billion (in 2018 prices) annually from 2024 onwards. This is expected to increase to about \u20ac19 billion per year from 2028, when revenues from the new ETS will also enter into the EU budget. At the same time, annual revenues from ETS allocated to Member States could go above \u20ac46 billion, thus exceeding by far what was expected when the Fit for 55 proposal was tabled.<\/p>\n\n\n\n
\"\"<\/a><\/p>\n

Commission proposes to reinforce long-term EU budget
\n<\/a><\/h4>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Adjustment of the CBAM<\/strong><\/p>\n

In light of the Fit for 55 package, the Commission is also proposing a technical adjustment to the control framework of the\u00a0Carbon Border Adjustment Mechanism (CBAM), to align its original proposal for an own resource with the adopted text. This source of revenue is expected to generate about \u20ac1.5 billion per year as of 2028 for the EU budget.<\/p>\n

Next steps<\/strong><\/p>\n

This proposal will feed into the negotiations with the Member States in the Council on a next generation of own resources of the budget.<\/p>\n

The legislative discussions on the first proposal of December 2021 have made limited progress. While a second proposal for new own resources was originally due by 2024, the Commission decided to put it forward earlier, so that Member States have all the elements to engage in the negotiation in the framework of the agreed roadmap. The Commission calls on the Council to accelerate these negotiations.<\/p>\n

More information: European Commission<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

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