1. The future of the EU budget Panel 2: Own resources Stefan Lehner Director, European Commission, Directorate-General for Budget Budapest Conference, 30 May 2008

2. Heads of Representation, Lisbon 12 June 2007 The mandate for a review of the EU budget includes resources and corrections „In accordance with the conclusions of the European Council, the Commission has been invited to undertake a full, wide-ranging review covering all aspects of EU spending, including the Common Agricultural Policy, and of resources, including the United Kingdom rebate, and to report in 2008/2009.“ (Interinstitutional Agreement between the European Parliament, the Council and the Commission, 17.5.2006)

3. Heads of Representation, Lisbon 12 June 2007 Significant shift in EU budget funding The EU budget is increasingly based on the GNI contribution, from 11% of the total in 1988 to 74% in 2013.

4. Heads of Representation, Lisbon 12 June 2007 Concerns about “fairness” led to numerous budgetary «corrections»  UK correction – 66% of the difference between contributions and its receipts  Lump sum payments to the Netherlands and Sweden  Reduced VAT rates and reduced UK correction payments for the Netherlands, Sweden, Germany, Austria  Retention of 25% of traditional own resources for all Member States collecting them

5. Heads of Representation, Lisbon 12 June 2007 Key questions for the reform of the EU Own Resources  Should a new EU Own Resource be proposed and what would be the most important justification ?  Could a new EU Own Resource be an integral part of EU policies to address future challenges, e.g. climate change ?  Should corrections disappear or be generalized ?

6. The future of the EU budget Panel 2: Own resources Stefan Lehner Director, European Commission, Directorate-General for Budget Budapest Conference, 30 May 2008