REPORT on the draft Council regulation on the calculation of the own resource based on plastic packaging waste that is not recycled, on the methods and procedure for making available that own resource, on the measures to meet cash requirements, and on certain aspects of the own resource based on gross national income

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the draft Council regulation on the calculation of the own resource based on plastic packaging waste that is not recycled, on the methods and procedure for making available that own resource, on the measures to meet cash requirements, and on certain aspects of the own resource based on gross national income

(13142/2020 – C9‑0018/2021 – 2018/0131(NLE))

(Consultation)

The European Parliament,

– having regard to the Council draft (13142/2020),

– having regard to Article 322(2) of the Treaty on the Functioning of the European Union and Article 106a of the Treaty establishing the European Atomic Energy Community pursuant to which the Council consulted Parliament (C9‑0018/2021),

– having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources[1],

– having regard to Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision  2014/335/EU, Euratom[2], and in particular Article 10 thereof,

– having regard to its resolutions of 14 March 2018 on the next MFF: preparing the Parliament’s position on the MFF post-2020[3] and on reform of the European Union’s system of own resources[4],

– having regard to its resolution of 30 May 2018 on the 2021-2027 multiannual financial framework and own resources[5],

– having regard to its interim report of 14 November 2018 on the multiannual financial framework 2021-2027 – Parliament’s position with a view to an agreement[6],

– having regard to its resolution of 10 October 2019 on the 2021-2027 multiannual financial framework and own resources: time to meet citizens' expectations[7],

– having regard to the statements by the Commission and the Council of 10 October 2019 on the 2021-2027 multiannual financial framework and own resources: time to meet citizens’ expectations,

– having regard to its resolution of 15 May 2020 on the new multiannual financial framework, own resources and the recovery plan[8],

– having regard to its legislative resolution of 16 September 2020 on the draft Council decision on the system of Own Resources of the European Union[9],

– having regard to Rule 82 of its Rules of Procedure,

– having regard to the report of the Committee on Budgets (A9-0048/2021),

1. Approves the Council draft as amended;

2. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

3. Asks the Council to consult Parliament again if it intends to substantially amend its draft;

4. Instructs its President to forward its position to the Council and the Commission.

 

 

Amendment 1

Draft regulation

Recital 13

 

Amendment 2

Draft regulation

Recital 15

Amendment 3

Draft regulation

Article 9 – paragraph 4

Amendment 4

Draft regulation

Article 9 – paragraph 5

 

Amendment 5

Draft regulation

Article 11 – paragraph 1 – subparagraph 4

Amendment 6

Draft regulation

Article 11 – paragraph 2

 

EXPLANATORY STATEMENT

The Making Available Regulation (MAR) is one of the implementing regulations which, in conjunction with the Own Resources Decision[10], constitute the EU’s system of own resources. The MAR establishes the procedures and deadlines for the making available to the Commission of the different categories of own resources. While the traditional own resources (TOR) and VAT and GNI-based own resources are covered by the Making Available Regulation (MAR1)[11] which was revised in 2015/2016, the Commission proposed a separate Making Available Regulation (MAR2) for the new own resources. Among the proposed new categories, Common Consolidated Corporate Tax Base, European Emissions Trading-based and plastic-waste-based own resources, only the latter one is part of the new Own Resources Decision as adopted in December 2020 (awaiting ratification) and therefore subject of the draft regulation MAR2 referred to the EP by Council for consultation on 10 February 2021.

 

The regulation covers primarily the rights and obligations of the Member States and of the Commission in the levying, collection, and transfer of the amounts due of the plastic levy, a statistics-based national contribution. The regulations comprises provisions on the conservation of documents, administrative cooperation, entry into the accounts and reporting, the calculation method, treasury and accounting arrangements, adjustments of previous years, the bringing forward of twelfths, late payment interests and comitology procedures.

 

The co-rapporteurs acknowledge that the Making Available of own resources has, broadly speaking, functioned adequately for existing own resources and that therefore comparable rules and automatisms should also be applied for the plastic-waste-based own resource and future new own resources to be introduced under the IIA roadmap. They aim therefore for a swift adoption of the legislative opinion so that the new plastic based own resources can be implemented with retroactive effect as soon as the ratification of the Own Resources Decision is completed.

 

The co-rapporteurs would however like to draw the attention to one potentially problematic new provision in the MAR2, which could also risk becoming a benchmark for a future consolidated MAR and thus all existing and new own resources: the rapid review procedure. The co-rapporteurs propose to call on the Council to delete these new paragraphs before adopting the regulation.

 

Background and justification

A review procedure for payments under reservation has been suggested by the German presidency of the Council in MAR2[12] for the plastic based own resource and the application of the same procedure to all own resources has been requested by a majority of Member States.

 

 

 

The co-rapporteurs consider the introduction of a rapid review provision as potentially superfluous and counter-productive. Firstly, the recent European Court case law[13] confirms that Member States do have access to legal recourse, even in cases of payments subject to reservations. Secondly, such a mechanism would allow Member States to contest their liability which would cause delays. It might also entail a ‘suspensive effect’ on the late payment interests in certain circumstances, thus potentially disrupting the incentivising purpose of these interest payments.

 

Once introduced in the MAR2 for the plastic-based own resources, there would be pressure to apply the same procedure to traditional own resources and in the future to the new own resources. The review procedure in the present draft of the MAR2 and also the draft regulation on the VAT-based own resources, would risk to result in a reversal of the ‘burden of proof’ concerning the accuracy of the calculations and provision of data. The position of the Commission could be weakened. The number of cases brought before the European Court of Justice might multiply.

 

The rapid review clause could thus result in a proliferation of requests for reviews and ensuing interruptions and disturbances of the making available ‘machinery’. It would bind administrative capacities and would require additional staff at national level and in the Commission. The administrative costs involved and the consequences for eventual late payment interest could be disproportionate. The proper functioning of the own resources system could be severely compromised. This in turn, could also be used by some as a justification for rejecting the introduction of new own resources.

 

The co-rapporteurs therefore propose to delete recital 13 and 15 as well as paragraphs 4 and 5 of Article 9, the last subparagraph of paragraph 1 of Article 11 and paragraph 2 of Article 11.

 

The co-rapporteurs look forward to discussing general principles, but also legal and technical details of the own resources system with the other institutions in the framework of the regular dialogue that has been established in the Interinstitutional Agreement and the roadmap towards the introduction of new own resources. The occasion of the legislative proposals for new own resources based on a digital levy, the revised ETS and a Carbon Border Adjustment Mechanism in by mid-2021 could be used to revisit and consolidate the implementing and making available rules under Article 311(4) and 322(2) in a spirit of efficiency, efficacy and mutual trust.

 

On a general note, the co-rapporteurs think that a deep reform of the own resources system through the introduction of new own resources is of paramount importance for the future of the EU and the completion of the recovery plan as they will constitute the reimbursement part that should avoid putting the repayment costs on the shoulders of citizens or leading to cuts in EU programmes. The co-rapporteurs emphasise that the implementing rules are an integral part of the own resources system. They should be robust, yet open and flexible to accommodate also additional own resources with different characteristics. In this context, the co-rapporteurs recall the relevance of the Interinstitutional Agreement including its roadmap towards the introduction of own resources. It encompasses the different steps of the introduction of new own resources, but also the modalities of cooperation between the institutions and the principles that should govern the own resources reform. The amount of the proceeds of the new resources should be sufficient to cover, at least, the repayment costs of the borrowing under NGEU.

 

PROCEDURE – COMMITTEE RESPONSIBLE