| Author (Corporate) | Council of the European Union |
|---|---|
| Series Title | Official Journal of the European Union |
| Series Details | L 424, Pages 1-10 |
| Publication Date | 15/12/2020 |
| Content Type | Blog & Commentary, Legislation, News, Policy-making |
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Summary: Decision (EU, Euratom) 2020/2053 - adopted by the Council of the European Union on 14 December 2020 - laying down rules on the allocation of Own Resources to the European Union (EU). It is also known as the ORD Decision. It repeals Decision 2014/335/EU, Euratom. Further information: The EU's own resources are the main sources of revenue for the EU Budget. This Decision raises the maximum amount of resources that can be called from Member States in any given year to finance EU expenditure (the own-resources ceiling) from 1.20% to 1.40% of the sum of the EU27 GNI. This reflects the integration of the European Development Fund (EDF) into the EU Budget and addresses the withdrawal of the United Kingdom (UK) from the EU. The Decision also authorises the European Commission to borrow up to €750 billion (2018 prices) on the capital markets, in the framework of the EU Recovery Instrument (also known as NextGenerationEU - NGEU). The own-resources ceiling is also temporarily increased by a further 0.6% to cover liabilities of the EU resulting from this borrowing. The original proposal for this Decision was tabled by the European Commission on 2 May 2018 in the context of the legislative package for the Multiannual Financial Framework (MFF) 2021-2027. As a result of the COVID-19 (coronavirus) pandemic, the Commission adopted its Europe's Recovery Plan, which included a revamped legislative package for the MFF 2021-2027 and the temporary EU Recovery Instrument. As a result, the proposed ORD Decision was also amended to address the investment needs foreseen in the recovery strategy. The amended Decision was tabled by the European Commission on 27 May 2020. A political agreement on the terms of the Recovery Plan was reached at a European Council meeting in July 2020. The European Parliament threatened not to endorse the agreed terms for the MFF 2021-2027 unless there was an overhaul of the own resources system. Its plenary adopted a legislative opinion on the proposed ORD Decision on 16 September 2020. Negotiations between the co-legislators on the MFF were successfully concluded on 10 November, which included the incorporation of a roadmap for new own resources. The Council of the European Union adopted the proposed ORD Decision on 14 December 2020. The Act was published in the Official Journal on 15 December 2020. The Own Resources Decision needs to be ratified by all Member States before it can enter into force. In late March 2021, Germany's Constitutional Court instructed the country's President not to ratify the Decision, following a constitutional complaint against German participation in the EU Recovery Instrument. This bid was eventually declined the Court on 21 April, clearing the way for the national ratification of this Decision. Media outlets later reported on potential difficulties with Finland's ratification process. |
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| Source Link | Link to Main Source http://data.europa.eu/eli/dec/2020/2053/oj |
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| Subject Categories | Economic and Financial Affairs |
| Subject Tags | EU Budget, Multiannual Financial Framework [MFF] |
| Keywords | MFF 2021-2027 |
| International Organisations | European Union [EU] |
