Explanatory Memorandum to COM(2022)102 - Amendment of Regulation 2021/768 as regards implementing measures for new own resources of the EU - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2022)102 - Amendment of Regulation 2021/768 as regards implementing measures for new own resources of the EU. |
|---|---|
| source | COM(2022)102  |
| date | 14-03-2022 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The proposal for a Council Decision amending the Own Resources Decision 2020/2053 adopted on 22 December 2021 1 adds a three new own resources to the EU budget. These additional new own resources will be based on the EU Emissions Trading Scheme for greenhouse gas emission allowances, the Carbon Border Adjustment Mechanism, and include a national contribution to the EU budget based on the share of residual profits of multinational enterprises as reallocated to Member States pursuant to the Council Directive on implementation of the global agreement on re-allocation of taxing rights the Commission will table in the course of 2022.
The purpose of this proposal is to amend the implementing measures for the system of own resources of the European Union provided by Council Regulation (EU, Euratom) 2021/768 2 . This proposal adds the practical arrangements, the proportionate and necessary control, supervison and review measures for the additional new own resources.
This proposal is complemented, in accordance with Article 322 i of the Treaty on the Functioning of the European Union, by regulations determining the methods and procedure by which own resources revenue is be made available or paid to the Commission, including measures to meet cash requirements where necessary.
The proposal includes the upgraded provisions and arrangements necessary for controlling and supervising the revenues stemming from the new own resources;
• Consistency with existing policy provisions in the policy area
This proposal is connected to the Making Available Regulations, specifically: (i) Council Regulation (EU, Euratom) No 609/2014 (for Traditional Own Resources and the Own Resources based on Value Added Tax and Gross National Income) 3 ; and (ii) Council Regulation (EU, Euratom) No 2021/770 (for the new Own Resources based on the Plastic packaging waste) 4 .
Finally, it is connected to the Regulation laying down implementing measures for the system of Own Resources (the current Regulation (EU, Euratom) No 2021/768 as amended 5 .
• Consistency with other Union policies
Given the nature of own resources, their management relies on the correct application of other Union policies:
Traditional Own Resources are linked to the customs union;
Own resource based on Value Added Tax are linked to the internal market;
Own resources based on the European Union Emissions Trading System and Carbon Border Adjustmenton Mechanism and Plastic packaging waste are linked to policies on the environment and climate action;
Own resource based on reallocated profits will be linked to the internal market once transposed into Union law.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The legal basis of this proposal is the fourth paragraph of Article 311 TFEU;
• Subsidiarity (for non-exclusive competence)
Not applicable.
• Proportionality
This proposal for an amending Regulation (EU, Euratom) 2021/768 adds the required measures for the new own resources. The inclusion of new own resources in the Own Resources Decision calls for updated legislation that includes implementing measures for these new own resources and that improves the existing measures.
• Choice of the instrument
The choice of a Council Regulation is based directly on the fourth paragraph of Article 311 of the TFEU that specifically states ‘The Council, acting by means of regulations (…) shall lay down implementing measures for the Union’s own resources system’.
3. CONTENT OF THE AMENDMENT
The Commission proposal to amend the Council Regulation (EU, Euratom) 2021/768 of 30 April 2021 laying down implementing measures for the system of own resources of the European Union may be summarised as follows:
Chapter II Provisions concerning control and supervision and relevant reporting requirements
–The provision of Article 2 of Regulation (EU, Euratom) 2021/768 Control and supervision measures are updated in relation to the new own resources set up in Article 2(1)(e), (f) and (g) of proposal COM(2021) 570 final.
–As regards the Emissions Trading System own resources the Commission shall undertake a review of data and documents related to the auctioning process in order to verify the accuracy and completeness of the statement of the Emission Trading System own resource made available to the EU budget. The Commission may also undertake on-the spot-inspection to Member States.
–As regards the Carbon Border Adjustment Mechanism own resources the Commission shall undertake checks and enquiries concerning the calculation, the making available of the own resource, including the controls on the underlying processes put in place by the Member States. The Commission may undertake on-the spot-inspections to Member States.
–As regards the own resources based on reallocated profits, the Commisson shall undertake verifications to ensure that the calculations for the own resource were performed correctly, including check of compliance of the underlying data with the reallocation of a share of residual profit of multinational enterprises allocated to Member States.
–The provision of Article 4 of Regulation (EU, Euratom) 2021/768 ‘Preparation and management of inspection' is extended and updated with regard to the entities that should provide access to data and assistance to the authorised agent in performing the controls foreseen for Emission Trading System, Carbon Border Adjustment Mechanism and the reallocated profit-based own resource that is applicable to all own resources.
–The recitals are also amended accordingly
Final provisions'and entry into force
The proposal states that the amended Regulation will enter into force at the same time as the amended Own Resources Decision, once amended.