On May 2, 2018, the European Commission proposed the budget for the period 2021-2027. The 27-member European Union has set its political priorities and now needs the resources to respond to them.
Overall, the Commission proposes a long-term budget of EUR 1 135 billion in commitment appropriations (expressed in 2018 prices) for the period 2021-2027, equivalent to 1.11% of the EU27 gross national income. (see Annex 2)
Besides flexibility, simplicity and better budget management, the European Commission also proposes to introduce a national contribution calculated on the basis of the amount of plastic packaging waste not recycled in each Member State.
THE NEW LONG-TERM BUDGET FINANCING SOURCES
The Commission proposes to simplify the current own resource system based on VAT. Also the Commission proposes the introduction of a “basket” of new own resources to be linked to the EU’s political priorities.
The new own resources”basket” includes:
- 20% of revenues from the emissions trading system;
a 3% levy on the new consolidated corporate tax base (which will be introduced gradually after the adoption of the necessary legislation);
a national contribution calculated on the basis of the amount of plastic packaging waste not recycled in each Member State – € 0.80 per kilogram.
On the basis of the proposals, the Commission will present in the coming weeks detailed proposals on future sector-specific financial programs.
The decision on the EU’s future long-term budget will belong to the Council, which will act unanimously with the consent of the European Parliament.
An agreement it is expected to be reach before the elections to the European Parliament and the Sibiu summit of 9 May 2019.
About the author:
Marius Brinzea has a managerial experience of over 20 years and he is a graduate of Strategy Executive Programs within INSEAD. He has worked in managerial positions both in Romania and abroad, also providing consultancy in a series of projects in Europe, USA and South America.