60 Ideas for Europe

The overall fiscal burden on European citizens is already high and should not be increased. The present ceiling on own resources – set at 1.27 per cent of aggregate GNI – appears on the whole adequate for the present and perspective tasks of the Union, if the ceiling is fully utilised by removing the implicit cap on appropriations (1 per cent of GNI) imposed by the European Council in the 2007-2013 MFF.
The system of own resources does not comply with the Treaty prescription the “the budget shall be financed wholly from own resources”, since most revenues are disbursed ex-post by member states from their own national budgets, under the GNI resource. Therefore, it should be changed by a suitable new regulation decided by the Council as provided for by article 269 of TEC, so as to establish a true European taxation to fund the production of European public goods through the Union’s budget. The GNI resource would remain to finance redistributive transfers between the member states and ensure ex-post balance of the EU budget.

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