Press Release: Forging the link between citizens and the EU budget

The current funding system has provided stable resources for the EU budget, but has become less transparent over time. It also depends increasingly on transfers from national treasuries, instead of being based on real 'own resources', as foreseen by the Treaties. The Commission's own resources report required by the law therefore proposes that the Council reflect on the introduction by 2014 of a new funding system for the EU, centred around a main fiscal resource based on either energy, VAT or corporate income tax. This would increase understanding by citizens of the resources going to the budget and make decision makers more accountable. This tax based resource would replace existing resources and would therefore be neutral in terms of the level of EU funding.