Revenue
Revenue
ECSC resources
‘Jean Monnet plans to launch a “European loan”’ from Le Monde (4 December 1952)
TextOn 4 December 1952, the French daily newspaper Le Monde highlights the implications of the introduction of the first European tax, planned for 1 January 1953, by the European Coal and Steel Community (ECSC).
High Authority Decision No 2-52 ECSC (23 December 1952)
TextFrom its establishment, the ECSC has at its disposal own resources generated by a direct levy on coal and steel undertakings. The High Authority Decision No 2-52 ECSC of 23 December 1952 determines the methods of assessment and of collection of these levies.
High Authority Decision No 3-52 ECSC (23 December 1952)
TextSince it was established, the ECSC has had its own resources which come from a direct levy imposed on coal and steel companies. High Authority Decision No 3-52 ECSC of 23 December 1952 establishes the amount of and the methods for applying the levies provided for in Articles 49 and 50 of the Treaty.
The ECSC levy (1 January 1953 to 31 January 1954)
TableAs of 1 January 1953, a general levy is introduced for the six ECSC countries. As a result of this tax on coal and steel output, the High Authority possesses its own resources and no longer depends on government subsidies.
Interview with Georges Berthoin (Paris, 22 July 2005) — Excerpt: the implementation of the common market for coal and steel
VideoIn this interview, Georges Berthoin, Principal Private Secretary (from 1952 to 1956) to Jean Monnet and then to René Mayer during their respective Presidencies of the High Authority of the European Coal and Steel Community, discusses the establishment of the first European tax in December 1952 and the implementation of the common market for coal and steel in Europe from 1953.
Commission Decision No 1761/75/ECSC (2 July 1975)
TextCommission Decision No 1761/75/ECSC of 2 July 1975 amending Decision No 2-52 ECSC of 23 December 1952 determining the methods of assessment and of collection of the levies provided for in Articles 49 and 50 of the ECSC Treaty.
Commission Decision No 2618/97/ECSC (23 December 1997)
TextCommission Decision No 2618/97/ECSC of 23 December 1997 fixing the rate of the levies for the 1998 financial year and amending Decision No 3/52/ECSC on the amount of and methods for applying the levies provided for in Articles 49 and 50 of the Treaty.
Protocol (No 34) on the financial consequences of the expiry of the ECSC Treaty (Nice, 26 February 2001)
TextProtocol (No 34) on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel, annexed to the Treaty establishing the European Community by the Treaty of Nice of 26 February 2001.
Treaty of Nice - Declaration n°24 on the financial consequences of the expiry of the ECSC Treaty (26 February 2001)
TextDeclaration No 24 on Article 2 of the Protocol on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel, annexed to the Final Act of the Treaty of Nice of 26 February 2001.
Decision of the Representatives of the Governments of the Member States on the expiry of the ECSC Treaty (27 February 2002)
TextThe Treaty establishing the European Coal and Steel Community (ECSC) expires on 23 July 2002. By Decision of 27 February 2002, the Representatives of the Governments of the Member States, meeting within the Council, provide for temporary management of the ECSC funds by the European Commission in the context of their transfer to the European Community (EC).
Changes in the ECSC levy rate (1953–2002)
TableChanges in the ECSC levy rate between 1953 and 2002.
‘The research continues!’ from La Voix du Luxembourg (27 June 2002)
TextOn 27 June 2002, as the Treaty establishing the European Coal and Steel Community (ECSC) nears the date of expiry, the daily newspaper La Voix du Luxembourg welcomes the avant-garde role played by the ECSC in the field of research and the continuation of this work even after the organisation ceases to exist.
Council Decision 2003/76/EC (1 February 2003)
TextCouncil Decision of 1 February 2003 establishing the measures necessary for the implementation of the Protocol, annexed to the Treaty establishing the European Community, on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel (2003/76/EC).
Council Decision 2003/77/EC (1 February 2003)
TextCouncil Decision of 1 February 2003 laying down multiannual financial guidelines for managing the assets of the ECSC in liquidation and, on completion of the liquidation, the Assets of the Research Fund for Coal and Steel (2003/77/EC).
Council Decision 2003/78/EC (1 February 2003)
TextCouncil Decision of 1 February 2003 laying down the multiannual technical guidelines for the research programme of the Research Fund for Coal and Steel (2003/78/EC).
The development of Community and European Union own resources
'National budget and European budget' from the Luxemburger Wort (26 March 1957)
TextIn 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.
Scheme for the allocation of the financial contributions of Member States in 1958
TableThe 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.
Contributions by the Member States to the budget of the EEC and the EAEC (1958-1970)
DiagramDiagram 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.
Council Regulation (EEC) No 25 (4 April 1962)
TextIn 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.
Commission proposals concerning the financing of the CAP, own resources and the powers of the European Parliament (31 March 1965)
TextOn 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.
European Parliament Resolution on Commission proposals
TextOn 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.
Final communiqué of the Hague Summit (2 December 1969)
TextOn 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.
The development of Community and European Union own resources
‘Italians, Germans and Dutch want to reduce their contributions to Europe's farm budget' from Le Monde (22 December 1969)
TextOn 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.
Relaunch of European integration at The Hague (1 and 2 December 1969)
ImageOn 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.
Council Decision 70/243 ECSC, EEC, Euratom on the replacement of financial contributions from Member States by own resources (21 April 1970)
TextThe 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.
'Europe comes of age', from Le Monde
TextOn 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.
‘Backs against the wall’ from Nieuw Europa (May 1970)
TextIn 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.
Address given by Maurice Schumann to the French National Assembly (Paris, 23 June 1970)
TextOn 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 (19 December 1977)
TextCouncil 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 (19 December 1977)
TextCouncil 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.
‘The budgetary challenge' from L'Europe en formation (December 1979)
TextIn 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.
Cartoon by Hanel on the question of the Community budget (1983)
Image‘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.
Cartoon by Hanel on the financing of the Community budget (1984)
Image‘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.
Conclusions of the Fontainebleau European Council (25 and 26 June 1984)
TextThe 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 Fontainebleau European Council (Fontainebleau, 25 and 26 June 1984)
ImageGroup 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.
‘Fontainebleau or the promised land’ from L’Europe en formation (June 1984)
TextIn 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.
Council Decision 85/257/EEC, Euratom (7 May 1985)
TextIn 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.
Commission Communication, Making a success of the Single Act: a new frontier for Europe (15 February 1987)
TextIn 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.
Address given by Jacques Delors to the European Parliament (18 February 1987)
TextOn 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.
‘The workings of the enlarged European Community’ from Le Monde (19 February 1987)
TextOn 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.
Commission report on the financing of the Community budget (28 February 1987)
TextOn 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.
Conclusions of the Brussels European Council (29 and 30 June 1987)
TextThe 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.
Conclusions of the Brussels European Council: extract concerning own resources, budgetary discipline and budget management (11–13 February 1988)
TextThe 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 Brussels European Council (11 February 1988)
ImageGroup photo taken at the European Council held in Brussels from 11 to 13 February 1988.
Council Decision 88/376/EEC, Euratom (24 June 1988)
TextThe 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 (29 May 1989)
TextCouncil Regulation (EEC, Euratom) No 1552/89 of 29 May 1989 implementing Decision 88/376/EEC, Euratom on the system of the Communities' own resources.
The development of Community and European Union own resources
Commission Communication, From the Single Act to Maastricht and beyond: the means to match our ambitions (11 February 1992)
TextIn 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.
Conclusions of the Edinburgh European Council: extract concerning the future financing of the Community (11 and 12 December 1992)
TextOn 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 (Edinburgh, 11 and 12 December 1992)
ImageGroup photo of the Edinburgh European Council held on 11 and 12 December 1992.
Evolution of Community revenue (1971-2004)
DiagramDiagrams showing the evolution of Community revenue following successive changes resulting from decisions on own resources.
Community revenue from 1971 to 2004
TableTable showing the development of Community revenue following the successive changes made in the light of decisions relating to own resources.
Bar chart showing the revenue of the European Union (1992–2004)
TextBar chart showing the development of Community revenue from 1992 to 2004.
Council Decision 94/728/EC, Euratom (31 October 1994)
TextThe 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.
Commission Communication (I), Agenda 2000 for a stronger and wider Union (1997)
TextVolume 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.
Information brochure on Agenda 2000 (1997)
TextIn 2000, the Commission publishes an information brochure setting out the broad lines of the Agenda 2000 Communication.
Commission report on the operation of the own resources system (7 October 1998)
TextIn 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.
Conclusions of the Berlin European Council: extract concerning Agenda 2000 (24 and 25 March 1999)
TextOn 25 March 1999, the Berlin European Council agrees on the changes to be made to the Decision of 31 October 1994 on own resources.
Extraordinary European Council meeting held in Berlin (24 and 25 March 1999)
ImageAt 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 (22 May 2000)
TextCouncil Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources.
Council Decision 2000/597/EC, Euratom (29 September 2000)
TextThe Council Decision of 29 September 2000 makes several changes to the Decision of 31 October 1994 but does not introduce new own resources.
Classification of expenditure and revenue ceilings (2000-2006)
TableComparative table of expenditure and revenue ceilings for the period 2000-2006.
‘The idea of a European tax to finance the Union gives rise to reservations among the Fifteen’ from Le Monde (12 July 2001)
TextOn 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.
Commission report on the operation of the own resources system (14 July 2004)
TextOn 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.
Negotiating box on the Financial Perspective 2007–2013 (15 June 2005)
TextOn 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.
Conclusions of the Brussels European Council: extract concerning the Financial Perspective (15 and 16 December 2005)
TextAt 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.
Group photo taken at the Brussels European Council (Brussels, 15 and 16 December 2005)
ImageAt 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.
Final proposal from the UK Presidency on the Financial Perspective 2007–2013 (19 December 2005)
TextOn 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.
The financing of the European Union budget (21 March 2007)
VideoOn 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.
" Le PE demande la création d'une véritable ressource propre" dans Bulletin Quotidien Europe (30 mars 2007)
TextAu 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.
‘The European Parliament wants to review the rules for financing the Union budget’ from Le Monde (31 March 2007)
TextOn 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.
The development of Community and European Union own resources
‘The European Parliament has officially opened the institutional debate on the reform and future financing of the Community budget’ from the Bulletin Quotidien Europe (4 April 2007)
TextIn 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.
European Parliament press release on the EU budget (10 April 2007)
TextIn 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.
Council Decision 2007/436/EC, Euratom (7 June 2007)
TextGuided 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.
Communication from the Commission entitled Reforming the budget, changing Europe (12 September 2007)
TextOn 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.
The question of budgetary imbalances
Participation by Member States in the funding of the Community budget
DiagramDiagrams showing the participation by Member States in the funding of the Community budget following successive enlargements.
Developments in own resources by Member State (1970-2006)
DiagramInteractive diagram showing the developments within the European Union of own resources by Member State following the introduction in 1970 of an independent system of financing the Community budget.
Statement by James Callaghan (Luxembourg, 1 April 1974)
TextFollowing his previous statement of 1st April 1974 on British renegotiation, the British Foreign Secretary, James Callaghan, clarifies for his European colleagues at the meeting of the Council of Ministers in Luxembourg on 4 June 1974, the changes that he and his Government would like to see made to Community policies and decisions, with particular regard to the budgetary question.
Statement by James Callaghan (Luxembourg, 4 June 1974)
TextFollowing his previous statement of 4 June 1974 on British renegotiation, the British Foreign Secretary, James Callaghan, clarifies for his European colleagues at the meeting of the Council of Ministers in Luxembourg the changes that he and his Government would like to see made to Community policies and decisions, with particular regard to the budgetary question.
‘Meeting between Valéry Giscard d'Estaing and Harold Wilson to focus on Europe and the future of Franco-British projects' from Le Monde (19 July 1974)
TextAs the meeting between Valéry Giscard d'Estaing and Harold Wilson is about to take place in Paris against the turbulent backdrop of British renegotiation, the French daily newspaper Le Monde analyses the demands of Her Majesty’s Government.
Final communiqué of the Paris Summit: extract concerning Britain's continued membership of the EEC (9 and 10 December 1974)
TextMeeting in Paris on 9 and 10 December 1974, the Heads of State or Government of the Nine, at the insistence of the United Kingdom, acknowledge the existence of an ‘unacceptable situation’ and instruct the Community institutions to draw up a correcting mechanism.
Communication from the Commission, Unacceptable situation and correcting mechanism (30 January 1975)
TextOn 30 January 1975, the Commission adopts a communication on the ‘correcting mechanism’ introduced by the Final Communiqué issued at the end of the meeting of Heads of State or Government in Paris on 9 and 10 December 1974. This mechanism will apply in the event that the participation of some Member States in the Community budget is unacceptable in view of their economic situation.
Conclusions of the Dublin European Council: extract concerning the budgetary correcting mechanism (10 and 11 March 1975)
TextAt the Dublin European Council held on 10 and 11 March 1975, the Heads of State or Government signal their agreement on the adoption of a budgetary correcting mechanism.
Group photo at the Dublin European Council (10 March 1975)
ImageOn 10 and 11 March 1975, the Heads of State or Government meeting as the European Council in Dublin adopt a political compromise whereby the British contribution to the Community budget is reduced. From left to right: Mariano Rumor, Italian Foreign Minister; François-Xavier Ortoli, President of the European Commission; Helmut Schmidt, Federal German Chancellor; Gaston Thorn, Prime Minister of Luxembourg; Joop den Uyl, Netherlands Prime Minister; Knud Borge Andersen, Danish Foreign Minister; Liam Cosgrave, Irish Prime Minister; Valery Giscard d'Estaing, President of the French Republic; Harold Wilson, British Prime Minister, and Leo Tindemans, Belgian Prime Minister.
‘A new step towards European Union' from 30 jours d'Europe (April 1975)
TextIn April 1975, in the monthly publication 30 jours d’Europe, Jean Sauvagnargues, French Foreign Minister, gives his interpretation of the outcome of the first Dublin European Council, with particular reference to the decision taken on the ‘British question’.
Council Regulation (EEC) No 1172/76 (17 May 1976)
TextFollowing the Dublin Summit held on 10 and 11 March 1975, the Council adopts Regulation (EEC) No 1172/76 of 17 May 1976 establishing a correcting mechanism. This mechanism is applicable to any Member State which is forced to bear a disproportionate burden in the financing of the Community budget and which fulfils certain conditions.
Conclusions of the Dublin European Council: extract concerning convergence and budgetary questions (29 and 30 November 1979)
TextAt the Dublin European Council held on 29 and 30 November 1979, the Heads of State or Government consider in depth the problem of the British contribution to the Community budget.
‘On the eve of battle' from Le Soir (29 November 1979)
TextOn 29 November 1979, in an article published in the Belgian daily newspaper Le Soir, Gaston Thorn, Luxembourg Foreign Minister, considers the agenda of the Dublin European Council and the heated debates among the Nine over the United Kingdom’s contribution to the Community budget.
‘Meeting with her European partners in Dublin, Thatcher condemns Britain’s “iniquitous” situation in the EEC’ from Le Soir (30 November 1979)
TextOn 30 November 1979, commenting on the progress of the work carried out at the Dublin European Council, the Belgian daily newspaper Le Soir describes the position taken by the British Prime Minister, Margaret Thatcher, regarding her country's contribution to the Community budget.
Group photo taken at the Dublin European Council (Dublin, 29 and 30 November 1979)
ImageGroup photo taken at the Dublin European Council held on 29 and 30 November 1979.
‘A lesson for the future' from L'Europe en formation (February 1980)
TextIn February 1980, the federalist magazine L'Europe en formation analyses the problem of the British contribution to the Community budget which threatens to drag the Community down into a serious crisis.
‘Maggie and her begging bowl' from L'Express (15 March 1980)
TextOn 15 March 1980, three months after the Dublin European Council, the French weekly magazine L'Express considers the position of Margaret Thatcher, British Prime Minister, regarding the method of determining the Member States' financial contributions to the Community budget.
Council conclusions on the British contribution (30 May 1980)
TextOn 30 May 1980, the Foreign Affairs Council reaches an agreement on the British contribution to the Community budget.
Council Regulation (EEC) No 2743/80 (27 October 1980)
TextFollowing the conclusions of the Foreign Affairs Council of 30 May 1980, the financial correction mechanism as provided for in 1976 is amended by Council Regulation No 2743/80 of 27 October 1980.
Council Regulation (EEC) No 2744/80 (27 October 1980)
TextIn Regulation No 2744/80 of 27 October 1980, the Council establishes supplementary measures in favour of the United Kingdom.
The question of budgetary imbalances
Cartoon by Behrendt on the Luxembourg European Council and Margaret Thatcher (1980)
Image‘Maggie was here…' During the European Council, held in Luxembourg on 27 and 28 April 1980, the Nine reach an initial agreement on the British rebate with great difficulty.
Cartoon by Behrendt on the British contribution to the Community budget (1980)
Image'A little something for Europe.' In 1980, the cartoonist Behrendt portrays the exasperation felt by the British concerning their financial contribution to the Community budget.
‘Stuttgart: the UK's money and that of the Ten' from Le Soir (18 June 1983)
TextOn 18 and 19 June 1983, the Belgian daily newspaper Le Soir analyses the issues surrounding the Stuttgart European Council and pays particular attention to the question of the British contribution to the Community budget.
‘The trial of strength in Stuttgart’ from Le Monde
TextOn 20 June 1983, at the Stuttgart European Council held from 17 to 19 June, the French daily newspaper Le Monde comments on the trial of strength between Margaret Thatcher, British Prime Minister, and her European counterparts over the British contribution to the Community budget.
‘The Stuttgart meeting’ from Le Monde
TextOn 21 June 1983, following the Stuttgart European Council held from 17 to19 June, the French daily newspaper Le Monde comments on the agreement reached between the United Kingdom and its European partners on the British budgetary rebate.
Interview with Leo Tindemans: the United Kingdom and Europe (Brussels, 24 February 2006)
VideoIn this interview, Leo Tindemans, Belgian Prime Minister from 1974 to 1979 and Foreign Minister from 1981 to 1989, considers the attitude of Margaret Thatcher, British Prime Minister from 1979 to 1990, towards the British contribution to the Community budget. He also refers more generally to the position of the other European partners concerning the stance adopted by the United Kingdom within the European Communities.
Conclusions of the Fontainebleau European Council (25 and 26 June 1984)
TextThe 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 Fontainebleau European Council (Fontainebleau, 25 and 26 June 1984)
ImageGroup 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. At this Summit, the 10 Member States agree on the rebate to be granted to the United Kingdom so as to reduce its contribution to the Community budget.
'Europe cannot afford a third failure' from The Guardian (25 June 1984)
TextOn 25 June 1984, as the Fontainebleau European Council opens, British daily newspaper The Guardian emphasises the dangers of a failure of the negotiations on the British contribution to the Community budget.
‘The Ten and the future of Europe’ from Le Figaro
TextOn 25 June 1984, commenting on the opening of the Fontainebleau European Council held on 25 and 26 June, the French daily newspaper Le Figaro outlines the efforts made by the French Presidency of the European Communities to find a solution to the problem of Britain's contribution to the Community budget.
‘Europe changes its skin' from Libération (27 June 1984)
TextOn 27 June 1984, the French daily newspaper Libération comments on the agreement on the amount of the British contribution to the Community budget reached by the Ten at the Fontainebleau European Council held on 25 and 26 June.
‘The British rebate: suspense and a happy ending’ from Libération (27 June 1984)
TextOn 27 June 1984, in connection with the Fontainebleau European Council, the French daily newspaper Libération describes the difficult negotiations between the Ten with regard to the question of the United Kingdom’s contribution to the Community budget.
Cartoon by Plantu on the outcome of the Fontainebleau European Council (June 1984)
ImageIn June 1984, the French cartoonist, Plantu, takes an ironic look at the different assessments of the outcome of the Fontainebleau European Council held on 25 and 26 June 1984. Margaret Thatcher, British Prime Minister, welcomes the agreement on the United Kingdom’s financial contribution to the budget of the European Communities, while François Mitterrand, President of the French Republic and President-in-Office of the Community, is pleased with the first European passport.
Council Decision 85/257/EEC, Euratom (7 May 1985)
TextIn 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.
Cartoon by Plantu on the British contribution to the Community budget (December 1987)
Image‘My money! My money!' ‘You're not so bad after all!!' Illustrating the failure of the Copenhagen European Council held on 4 and 5 December 1987, the French cartoonist, Plantu, emphasises the disagreement between Margaret Thatcher, British Prime Minister, and her European counterparts with regard to budgetary issues (on the right, French President François Mitterrand and his Prime Minister, Jacques Chirac).
Conclusions of the Brussels European Council: extract concerning own resources, budgetary discipline and budget management (11–13 February 1988)
TextThe European Council, meeting in Brussels from 11 to 13 February 1988, decides to revise the system of own resources and establishes the principle for the correction of budgetary imbalances.
Group photo taken at the Brussels European Council (11 February 1988)
ImageGroup photo taken at the European Council held in Brussels from 11 to 13 February 1988.
Council Decision 88/376/EEC, Euratom (24 June 1988)
TextThe 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, fixes a ceiling for the total amount of own resources and makes a few changes to the British compensation mechanism.
Summary of own resources by Member State from 1992 to 2004
TableTable showing the share of Member States in the financing of the Community budget since 1992.
UK correction payments 1992-2004
TableTable showing the proportion paid by Member States towards the UK correction payments from 1992 to 2004.
Net contributors and net beneficiaries (1992–2004)
TableTable showing the Member States that are net contributors to and net beneficiaries of the general budget of the European Union from 1992 to 2004.
Council Decision 94/728/EC, Euratom (31 October 1994)
TextThe Council Decision of 31 October 1994 on own resources calls on the Commission to give further consideration to the question of budgetary imbalances.
Cartoon by Haitzinger on the German contribution to the British rebate (June 1998)
Image‘Stop! … He’s hardly going to be fit to put a cross in the right place in September!’ In June 1998, on the occasion of the Cardiff European Council, the German cartoonist, Horst Haitzinger, illustrates the forceful address given by the German Chancellor, Helmut Kohl, calling for a reduction in the German contribution to the funding of the British rebate.
Commission report on the operation of the own resources system (7 October 1998)
TextIn 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.
The question of budgetary imbalances
‘European budget: the great battle over the British rebate' from Le Figaro (15 December 1998)
TextOn the eve of the next Summit, the French daily newspaper Le Figaro looks back over the reasons that led the Heads of State or Government, meeting at the Fontainebleau European Council in June 1984, to offer a rebate to the United Kingdom.
'British deal on offer to summit' from The Guardian (23 March 1999)
TextOn 23 March 1999, commenting on the implications of the Berlin European Council of 24 and 25 March, the British daily newspaper The Guardian outlines the efforts of the German and British Governments to secure a political agreement on the rebate on the British contribution to the Community budget.
Conclusions of the Berlin European Council: extract concerning Agenda 2000 (24 and 25 March 1999)
TextOn 25 March 1999, the Berlin European Council agrees on the changes to be made to the Decision of 31 October 1994 on own resources.
‘Blair fight for “not a euro less” in rebate’ from The Guardian (26 March 1999)
TextOn 26 March 1999, the British daily newspaper The Guardian comments on British Prime Minister Tony Blair’s fight at the Berlin European Council of 24 and 25 March to maintain the rebate granted to the United Kingdom in the financing of the Community budget.
Council Decision 2000/597/EC, Euratom (29 September 2000)
TextThe Council Decision of 29 September 2000 on own resources maintains the UK correction but makes a few technical adjustments.
Commission report on the operation of the own resources system (14 July 2004)
TextOn 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.
Own resources payments by Member State in 2004
TableTable showing the share of the 25 Member States in the financing of the Community budget following the fifth enlargement.
Negotiating box on the Financial Perspective 2007–2013 (15 June 2005)
TextOn 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.
‘The United Kingdom holds on to its rebate’ from Libération (17 June 2005)
TextFollowing the European Council held in Brussels on 16 and 17 June 2005, the French daily newspaper Libération looks again at the reasons which led to the United Kingdom being granted a reduction in its contribution.
Group photo of the Brussels European Council (Brussels, 16 and 17 June 2005)
ImageGroup photo of the Brussels European Council held on 16 and 17 June 2005 during the Luxembourg Presidency.
Press conference held by Jean-Claude Juncker (Brussels, 17 June 2005)
VideoAt the end of the Brussels European Council of 16 and 17 June 2005, Jean-Claude Juncker, Luxembourg Prime Minister and President-in-Office of the European Council, expresses his disappointment at the failure of the negotiations on the financing of the European Union budget for the period 2007–2013.
Press conference held by Tony Blair (Brussels, 17 June 2005)
VideoAt the end of the Brussels European Council of 16 and 17 June 2005, Tony Blair, British Prime Minister, gives his views on the failure of the negotiations on the financing of the European Union budget for the period 2007–2013.
Press conference held by Gerhard Schröder (Brussels, 17 June 2005)
VideoOn 17 June 2005, at the end of the Brussels European Council of 16 and 17 June, Gerhard Schröder, Chancellor of the Federal Republic of Germany (FRG), expresses his disappointment at the failure of the negotiations on the financing of the European Union budget for the period 2007–2013.
Address given by Jean-Claude Juncker on the outcome of the Luxembourg Presidency and the European Council held on 16 and 17 June (Brussels, 22 June 2005)
TextOn 22 June 2005, Jean-Claude Juncker, Luxembourg Prime Minister and President-in-Office of the European Council, gives an address to the European Parliament in which he summarises the achievements of the Luxembourg Presidency and of the European Council held on 16 and 17 June 2005. In his address, he refers to the absence of an agreement on the financial perspective and on the contentious issue of the British rebate.
Address given by Jean-Claude Juncker on the achievements of the Luxembourg Presidency of the Council of the European Union (Brussels, 22 June 2005)
VideoOn 22 June 2005, Jean-Claude Juncker, Luxembourg Prime Minister and Finance Minister and President-in-Office of the European Council, gives an address to the European Parliament in which he outlines the achievements of the Luxembourg Presidency of the Council of the European Union and the European Council of 16 and 17 June 2005. He also refers to the failure to reach agreement on the Financial Perspective and on the thorny issue of the British rebate.
Cartoon by Anibal and Reimão on the budget of the European Union
Image‘Blair must have put off presenting the budget of the European Union several times. We can't even rely on British punctuality any more …' In 2005, Portuguese cartoonists Aníbal and Reimão take an ironic look at the British Prime Minister's stubborn insistence on rejecting any budget agreements.
Jacques Le Cacheux, The poisonous budget rebate debate
TextIn this study, Jacques Le Cacheux, a specialist in Community public finances, proposes a critical analysis of the concept of ‘net balance’.
Conclusions of the Brussels European Council: extract concerning the Financial Perspective (15 and 16 December 2005)
TextAt 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.
Group photo taken at the Brussels European Council (Brussels, 15 and 16 December 2005)
ImageAt 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.
Final proposal from the UK Presidency on the Financial Perspective 2007–2013 (19 December 2005)
TextOn 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.
‘Europe: Blair saves the furniture without destroying the building’ from Libération (31 December 2005)
TextOn 31 December 2005, the French daily newspaper Libération comments on the budget agreement reached by Tony Blair, British Prime Minister, at the European Council held on 15 and 16 December 2005.
‘The European Parliament wants to review the rules for financing the Union budget’ from Le Monde (31 March 2007)
TextOn 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.
Council Decision 2007/436/EC, Euratom (7 June 2007)
TextGuided 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.
Interview with Jean-Jacques Kasel: the Delors I and II Packages (Sanem, 4 September 2007)
VideoIn this interview, Jean-Jacques Kasel, Director of Political and Cultural Affairs in the Luxembourg Foreign Ministry from 1986 to 1992, discusses the difficulties encountered during the reform of the Community budget, undertaken in response to communications from the Commission known as the ‘Delors I and II Packages’. He particularly describes the general atmosphere of bargaining between the States which were net contributors and those which were net beneficiaries.
The question of budgetary imbalances
Interview with Joseph Weyland (Sanem, 19 February 2010) — Excerpt: The Fontainebleau European Council, the British rebate and the establishment of the single market
VideoIn this interview excerpt, Joseph Weyland, Permanent Representative to the European Communities from 1984 to 1991, emphasises the importance of the Fontainebleau European Council of 25 and 26 June 1984, where an agreement was reached on the United Kingdom’s financial contribution to the budget of the European Communities. He also describes the Fontainebleau European Council as the starting point for a European revival, with the establishment of a single market on the initiative of the European Commission, headed by Jacques Delors from 1985 to 1995.