In an article in published in the Luxemburger Wort the day after the signing of the Treaties establishing the European Economic Community (EEC) and Euratom by the Six in Rome on 25 March 1957, Pierre Werner, Luxembourg Finance Minister, outlines the mechanisms for financing the Community institutions.

The Treaties establishing the European Economic Community (EEC) and the European Atomic Energy Community (EAEC or Euratom), signed in Rome in 1957, lay down the basis for the scheme for the allocation of the financial contributions made by Member States to the EEC general budget and to Euratom’s operating budget and research and investment budget.

Diagram showing the financial contribution made by the Member States to the general budget of the European Economic Community and the operating, research and investment budgets of Euratom from 1958 to 1970.

In Regulation (EEC) No 25 of 4 April 1962 on the financing of the common agricultural policy, the Council establishes a European Agricultural Guidance and Guarantee Fund and lays down some rules relating to financial policy. Furthermore, it decides that the levies on agricultural imports from third countries constitute own resources for the Community.

On 31 March 1965, the Commission of the European Economic Community presents three proposals to the Council, one of which involves gradually replacing the financial contributions of the Member States by own resources.

On 12 May 1965, the European Parliament adopts a resolution on proposals from the European Commission relating to financing the common agricultural policy (CAP) and to the creation of own resources for the EEC.

On 1 and 2 December 1969, the Heads of State or Government of the Six meeting in The Hague agree on the gradual replacement of financial contributions from the Member States by own resources.

On 22 December 1969, during a meeting between the Foreign, Finance and Agriculture Ministers of the Six in Brussels, the French daily newspaper Le Monde leads with the difficult debates on the establishment of a financing system for the Community budget and calls for a system of own resources.

On 1 December 1969, on the occasion of the Hague Summit, the Heads of State or Government of the Six pose for the traditional group photo. In the first row (from left to right): Mariano Rumor, Willy Brandt, Georges Pompidou, Piet de Jonck, Gaston Eyskens, Jacques Chaban-Delmas and Pierre Werner. In the second row (from left to right): Aldo Moro, Gaston Thorn, Maurice Schumann, Pierre Harmel, Joseph Luns and Walter Scheel.

The Council Decision of 21 April 1970 lays down the transition from financial contributions from Member States to an autonomous system of Community financing based on traditional own resources (agricultural levies and customs duties) and a VAT resource.

On 23 April 1970, in its coverage of the signing by the Six, the previous day in Luxembourg, of the Treaty amending Certain Budgetary Provisions of the Treaties establishing the European Communities and the Treaty establishing a Single Council and a Single Commission of the European Communities, the French daily newspaper Le Monde focuses on the future challenges to be met by the Six.

In May 1970, the Dutch European Movement’s monthly publication Nieuw Europa comments on the signing, on 23 April in Luxembourg, of the Treaty amending certain budgetary provisions of the Treaties establishing the European Communities.

On 23 June 1970, Maurice Schumann, French Foreign Minister, gives an address to the National Assembly in which he defends the government bill on the allocation of own resources to the European Communities.

Council Regulation (EEC, Euratom, ECSC) no 2891/77 of 19 December 1977 implementing the decision of 21 April 1970 on the replacement of financial contributions from member states by the Communities' own resources.

Council Regulation (EEC, Euratom, ECSC) no 2892/77 of 19 December 1977 implementing in respect of own resources accruing from value added tax the decision of 21 April 1970 on the replacement of financial contributions from member states by the Communities' own resources.

In November-December 1979, the federalist magazine L'Europe en formation calls for an increase in the European Community's own resources so as to guarantee its ability to function and enable it to fulfil its tasks in the proper manner.

‘From Summit to Summit.’ In June 1983, as the Stuttgart European Council takes place, the German cartoonist Hanel illustrates the difficulties experienced by the Member States of the European Economic Community (EEC) in reaching a compromise on the question of the funding of the Community budget.

‘From hole to hole.’ In 1984, the German cartoonist, Walter Hanel, illustrates the difficulties faced by the Ten in resolving the crisis of the financing of the Community budget.

The European Council, held at Fontainebleau on 25 and 26 June 1984, decides on the changes to be made to the Decision of 21 April 1970 on own resources and agrees on a correction mechanism designed to resolve budgetary imbalances.

Group photo of the Heads of State or Government of the 10 Member States of the European Communities at the Fontainebleau European Council of 25 and 26 June 1984.

In June 1984, the Federalist journal L’Europe en formation lists the promising decisions taken by the Ten at the Fontainebleau European Council held on 25 and 26 June 1984. However, it expresses doubts in particular about the improvement of own resources and the settlement of the British dispute.

In its decision of 7 May 1985, the Council maintains the existing sources of revenue and determines the changes required to increase the amount of own resources. In addition, it introduces a mechanism to correct budgetary imbalances.

In its communication dated 15 February 1987 entitled Making a success of the Single Act: a new frontier for Europe, commonly known as the ‘Delors I Package’, the Commission notes that the regime of own resources is no longer sufficient to cover Community spending. It also recommends the use of a fourth resource.

On 18 February 1987, Jacques Delors, President of the Commission of the European Communities, outlines what will be the focus of the Commission Communication entitled Making a success of the Single Act: a new frontier for Europe to the European Parliament. Amongst other things, he outlines therein the changes which will have to be made to the financial resources of the Community.

On 19 February 1987, the French daily newspaper Le Monde analyses the proposals set out in the Delors I package on the reform of the Community budget.

On 28 February 1987, the Commission submits to the Council and to Parliament a report on the financing of the Community budget in which it notes the growing disparity between resources and Community requirements and the need to establish a system of medium-term expenditure planning with the aim of strengthening management efficiency.

The European Council held in Brussels from 29 to 30 June 1987 gives its opinion on the Commission Communication entitled Making a success of the Single Act: a new frontier for Europe.

The European Council, meeting in Brussels from 11 to 13 February 1988, decides to revise the financing system of the Community budget.

Group photo taken at the European Council held in Brussels from 11 to 13 February 1988.

The Council Decision of 24 June 1988 establishes a new system for financing the Community budget. Among other new developments, the Decision establishes a fourth resource and fixes a ceiling for the total amount of own resources.

Council Regulation (EEC, Euratom) No 1552/89 of 29 May 1989 implementing Decision 88/376/EEC, Euratom on the system of the Communities' own resources.

In its Communication of 11 February 1992 entitled From the Single Act to Maastricht and beyond: the means to match our ambitions, also known as the ‘Delors II Package’, the Commission proposes adjustments to the structure of Community funding so as to take greater account of each Member State’s ability to pay.

On 12 December 1992, the Edinburgh European Council agrees on the changes to be made to the Decision of 24 June 1988 on own resources.

Group photo of the Edinburgh European Council held on 11 and 12 December 1992.

Diagrams showing the evolution of Community revenue following successive changes resulting from decisions on own resources.

Table showing the development of Community revenue following the successive changes made in the light of decisions relating to own resources.

Bar chart showing the development of Community revenue from 1992 to 2004.

The Council Decision of 31 October 1994 sets the level of Community resources for a period of five years (1995–1999) whilst making several changes to the Decision of 24 June 1988 on own resources.

Volume I of the European Commission Communication of 16 July 1997 entitled Agenda 2000 for a stronger and wider Union. Amongst other things, this first volume deals with the financial framework for the period 2000–2006.

In 2000, the Commission publishes an information brochure setting out the broad lines of the Agenda 2000 Communication.

In its report of 7 October 1998, the Commission analyses the results of the own resources system of the European Union, seeks new own resources and considers the correction mechanism established on behalf of the United Kingdom.

On 25 March 1999, the Berlin European Council agrees on the changes to be made to the Decision of 31 October 1994 on own resources.

At the end of the extraordinary meeting of the European Council held on 24 and 25 March 1999 in Berlin, the Heads of State or Government of the fifteen Member States of the European Union endorse the implementation of the new common agricultural policy (CAP) and the financial perspective relating to Agenda 2000.

Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources.

The Council Decision of 29 September 2000 makes several changes to the Decision of 31 October 1994 but does not introduce new own resources.

Comparative table of expenditure and revenue ceilings for the period 2000-2006.

On 12 July 2001, the French daily newspaper Le Monde comments on the idea put forward by Belgium at the meeting of Finance Ministers of the Fifteen, held two days earlier, to introduce a European tax to finance the Union.

On 14 July 2004, the Commission adopts a report on the operation of the own resources system. In it, it stresses the complexity and lack of transparency of this system for citizens, the increasingly limited financial independence of the Union and the need to review the correction mechanism for budgetary imbalances.

On 15 June 2005, the Presidency of the Council of the European Union submits a revised version of the ‘negotiating box’ on the Financial Perspective 2007–2013 to the European Council, with a view to the meeting to be held on 16 and 17 June 2005.

At the Brussels European Council, held on 15 and 16 December 2005, the Heads of State or Government reach an agreement on the Financial Perspective 2007–2013.

At the end of the Brussels European Council held on 15 and 16 December 2005, the Heads of State or Government of the 25 Member States of the European Union secure agreement on the 2007–2013 financial perspective.

On the basis of this final proposal from the UK Presidency (document 15915/05), the Heads of State or Government, meeting at the Brussels European Council on 15 and 16 December 2005, conclude that the system of own resources must be modified to allow its entry into force on 1 January 2007.

On 21 March 2007, Eurinfo broadcasts a report on the financing of the European Union budget. With a view to the debates on the revision of the 2007–2013 budget, Alain Lamassoure, Member of the European Parliament, tries to persuade his national counterparts to provide the Community budget with its own tax revenue in order to make it completely independent of direct national contributions.

Au lendemain du vote approbateur du Parlement européen sur le rapport concernant l’avenir des ressources propres de l’Union européenne, rédigé par le député européen Alain Lamassoure, le Bulletin Quotidien Europe, dans son édition du 30 mars 2007, expose les grandes lignes de ce rapport et notamment la proposition de réforme en deux phases du système de ressources propres existant.

On 31 March 2007, following the European Parliament’s vote on the report by Alain Lamassoure regarding the future of the own resources of the European Union, the French daily newspaper Le Monde considers the issue of the financing of the Union and outlines the two stages of reform proposed by the report.

In his editorial of 4 April 2007, Ferdinando Riccardi, leader writer for the Bulletin Quotidien Europe, comments on the report submitted by the MEP, Alain Lamassoure, on the future of the own resources of the European Union.

In a report adopted by the European Parliament on 29 March 2007, the MEPs propose a two-step process for reforming the way in which the European Union budget is financed.

Guided by the overall objective of equality, the Council Decision of 7 June 2007 makes certain amendments to the Decision of 29 September 2000 on the system of own resources and the correction of budgetary imbalances. This Decision enters into force retroactively on 1 January 2007.

On 12 September 2007, the European Commission adopts a public consultation document entitled ‘Reforming the budget, changing Europe’ on the European Union budget review due to be undertaken in 2008–2009. This communication suggests avenues which might be explored concerning the changes to be made in terms of both expenditure and revenue.