PURPOSE: to make certain adjustments to the Community’s own resources.

LEGISLATIVE ACT: Council Regulation (EC, Euratom) No 105/2009 amending Regulation (EC, Euratom) No 1150/2000 implementing Decision 2000/597/EC, Euratom on the system of the Communities’ own resources.

CONTENT: the Council adopted a Regulation updating the EU's budgetary rules in line with Decision 2007/436/EC on the system of the EU own resources. The Regulation also takes into account the development of Community legislation since the previous amendments, introduced by Regulation 2028/2004.

The changes, which will apply retroactively as from 1 January 2007, relate in particular to:

- the elimination of the distinction between agricultural duties and import duties : following the implementation in EU legislation of agreements concluded during the Uruguay Round of world trade negotiations, there is no longer any material difference between agricultural duties and customs duties. The distinction made between these duties was therefore removed in the 2007 own resources decision;

- the inclusion of gross reductions for the Netherlands and Sweden in their annual gross national income-based contributions for the period 2007-2013: according to the 2007 own resources decision, the Netherlands and Sweden will receive a gross reduction in their annual GNI-based contributions for the period 2007-2013. The 2007 decision specifies the amount of this reduction (which must be adapted to current prices) and indicates that this reduction shall be granted only after calculation of the correction in favour of the United Kingdom. This reduction is to be financed by all Member States via monthly twelfths.

ENTRY INTO FORCE: on the day of entry into force of Decision 2007/436/EC, (i.e. when Member States give notification to the Council of the completion of the procedures for the adoption of the Decision in accordance with their respective constitutional requirements.

APPLICATION: 01/01/2007.

The European Parliament adopted, by 601 votes to 44 with 32 abstentions, a legislative report approving, subject to amendments, the proposal for a Council regulation amending Regulation (EC, Euratom) No 1150/2000 implementing Decision 2000/597/EC, Euratom on the system of the Communities' own resources.

The report had been tabled for consideration in plenary by Alain LAMASSOURE (EPP-ED, FR) on behalf of the Committee on Budgets.

The amendments adopted by the Parliament do not change the content of the proposal but rather the review process. MEPs consider it useful to recall that the Council requested the Commission to undertake a full, wide-ranging review covering all aspects of EU spending and of resources and to report in 2008/2009. In accordance with the Interinstitutional Agreement, MEPs consider that the European Parliament should be fully associated with the review at all stages.

The Committee on Budgets adopted - under the consultation procedure - the report by Alain LAMASSOURE (EPP-ED, FR) and amended the proposal for a Council regulation amending Regulation (EC, Euratom) No 1150/2000 implementing Decision 2000/597/EC, Euratom on the system of the Communities' own resources.

The amendments suggested by the Committee on Budgets do not change the content of the proposal but rather the review process. MEPs consider it useful to recall that the Council requested the Commission to undertake a full, wide-ranging review covering all aspects of EU spending and of resources and to report in 2008/2009.

In accordance with the Interinstitutional Agreement, MEPs consider that the European Parliament should be fully associated with the review at all stages.

PURPOSE: to update the Community’s financial rules (ORD 2007).

PROPOSED ACT: Council Regulation.

CONTENT: the purpose of this proposal is to make certain adjustments to the Community’s own resources. In summary they are:

1) Provisions to be amended as a result of Decision 2007/436/EC Euratom:

These concern:

eliminating the distinction between agricultural duties and import duties; and including gross reductions for the Netherlands and Sweden in their annual GNI-based contributions for the period 2007-2013 (laying down the procedure and timing for financing the gross reduction).

2) Technical amendments not linked to ORD 2007:

These concern:

GNP/GNI references; bringing forward the monthly twelfths based on specific needs of EAGF and the Community’s cash position; reserves relating to loans and loan guarantees as well as reserves for emergency aid; efficiency management of own resources accounts; and consolidating Article 10.

The proposed amendments can only enter into force once the Decision has been adopted by all Member States in accordance with their constitutional requirements. As a result it is proposed that the Regulation should enter into force on the same day as ORD 2007, with retroactive effect as of 1 January 2007.

PURPOSE: to update the Community’s financial rules (ORD 2007).

PROPOSED ACT: Council Regulation.

CONTENT: the purpose of this proposal is to make certain adjustments to the Community’s own resources. In summary they are:

1) Provisions to be amended as a result of Decision 2007/436/EC Euratom:

These concern:

eliminating the distinction between agricultural duties and import duties; and including gross reductions for the Netherlands and Sweden in their annual GNI-based contributions for the period 2007-2013 (laying down the procedure and timing for financing the gross reduction).

2) Technical amendments not linked to ORD 2007:

These concern:

GNP/GNI references; bringing forward the monthly twelfths based on specific needs of EAGF and the Community’s cash position; reserves relating to loans and loan guarantees as well as reserves for emergency aid; efficiency management of own resources accounts; and consolidating Article 10.

The proposed amendments can only enter into force once the Decision has been adopted by all Member States in accordance with their constitutional requirements. As a result it is proposed that the Regulation should enter into force on the same day as ORD 2007, with retroactive effect as of 1 January 2007.