EU own resources at heart of EU public power

The topic of EU own resources may seem technical, but is in fact at the heart of EU public power. Professor Mario Monti, former Italian Prime Minister and former EU Commissioner, stated this on Monday in a meeting with EPP MEPs and MPs. The EPP Group is the first political group in the European Parliament (EP) to discuss the principle of EU own resources, after Monti's High-Level Group on this topic presented a report.

A high-level group to reform the system of EU own resources

The European Union now relies mostly on contributions from Member States. "The image of Heads of State each claiming they got a better deal than others does not look good," Professor Mario Monti stated. He agreed with EPP Group Vice-Chairwoman Esther de Lange that these negotiations look like 'cow trade' - "with all due respect to cows".

Monti stated that his High-Level Group will work this year and next year on a preliminary report. The report will be the basis for an interinstitutional conference in 2016, which will also include representatives of national parliaments.

A reform of the system of EU own resources should not influence the overall public spending or tax burden

French MEP Alain Lamassoure, Chair of the Special Committee on Tax Rulings and Member of the High-Level Group, told those at the meeting that the current system of EU contributions is indeed not satisfactory. A review must have support from all Member States. Lamassoure made clear that a reform of the system of EU own resources should not influence the overall public spending or tax burden.

MP Hans-Peter Friedrich from Germany, Chairman of the CDU/CSU Group in the Bundestag, also stated that EU own resources do not mean extra money for the EU. "Just like Member States, the EU must prioritise within a tight budget," Friedrich told the audience. "Although most citizens don't make a distinction between regional, national or European burdens: it is the overall amount that counts."

Finnish MP Kimmo Sasi, Chair of the Committee on Finance in the Eduskunta, underlined the necessity for a simple, fair and transparent system of own resources. To deter scepticism relative to EU reforms - a feeling that the money has not always been spent wisely - the new financing system should be complemented by a decrease in EU expenditure. In addition, the correction mechanism should be simple, transparent and well-reasoned.

MP Antonio Rodrigues from Portugal, Deputy Chairman of the PSD Parliamentary Group, said the question of own resources is a political one and so we should not approach it in a technical way. He put forward a series of recommendations on how the debate should be addressed, stressing the need to promote a simple and transparent system in the future, to avoid new exemptions to the general rule. Also, this new system should be viable for at least a decade, so that it can provide the EU with a stable income.

Greek MP Giannis Plakiotakis, Secretary General of the Nea Demokratia Parliamentary Group, stated that the current system of own resources is indeed widely recognised today as a complex set of rules. Tensions exist because extra national contributions to the European Union budget are required because of revised estimates for economic growth. A new system should neither increase overall expenditure nor the tax burden for citizens. It must not be a way to impose new taxes, but rather a way to elaborate new concepts for funding institutions.

Encouraging the involvement of national parliaments in EU policy-making

The EPP Group has a strong tradition of meeting together with members of national parliaments. These meetings and close contacts are beneficial for both the MEPs and MPs dealing with subsidiarity.

On the issue of parliamentary scrutiny, the Chair of the EU Affairs Committee of the Latvian Parliament, Lolita Cigane MP, guest speaker at the working session, said in her intervention that national parliaments are crucial for explaining that EU policy is about solidarity and prosperity. To encourage increased involvement of national parliaments, the Latvian EU Presidency has sent a questionnaire to parliaments about strengthening COSAC (Conference of the committees of the national parliaments of the European Union Member States dealing with European Union affairs and MEPs) meetings.

MP Cigane elaborated on the idea of a 'green card procedure', which would allow a minimum number of national parliaments to put an idea on the agenda of the European Commission. This would complement the current 'yellow card procedure', where national parliaments can demand that the European Commission reconsiders a proposal.