Select Committee on European Scrutiny Thirteenth Report


NEW OWN RESOURCES DECISION


(20343)
10029/99
COM(99) 33

Draft New Own Resources Decision.
Legal base: Article 269 EC; consultation; unanimity
Deposited in Parliament: 19 July 1999
Department: HM Treasury
Basis of consideration: Letter of 4 April 2000
Previous Committee Report: HC 34-xxviii (1998-99), paragraph 14 (20 October 1999)
To be discussed in Council: May 2000
Committee's assessment: Politically important
Committee's decision: Cleared

Background

  19.1  The Own Resources Decision lays down the sources of Community revenue. It sets a binding ceiling on that revenue, determined as a percentage of overall Community Gross National Product. The Decision also sets out the formula for the UK abatement.

  19.2  As part of the Agenda 2000 negotiations, conclusions were reached at the Berlin European Council in March 1999 which require a new Own Resources Decision.

  19.3  On 20 October 1999, we reported on a proposal for a new Own Resources Decision. We noted that the Government considered that the draft Decision, in general terms, implemented the Berlin decisions effectively and fairly. We also noted that the Government proposed to seek improvements on some points and would be considering carefully the proposed simplifications (relating, amongst other matters, to the calculation of the UK abatement) to ensure that no unacceptable change of substance had been introduced. We did not clear the document and asked the Minister to keep us informed of progress.

The Minister's reply

  19.4  In her letter of 4 April 2000, the Economic Secretary to the Treasury (Miss Melanie Johnson) says:

    "On the matter of improvements, we have now given careful consideration to the proposed simplifications of the 1994 text and in particular the way in which the Commission take account of new data. We are satisfied that these simplifications represent clarification of current practice and do not introduce any changes. In particular we are content that the new text on the abatement is fully consistent with the current treatment and calculation.

    "We are now satisfied that the new decision accurately reflects the Berlin Conclusions."

Conclusion

  19.5  In the light of the Minister's assurances, we now clear this document.


 
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