Own resources are the EU's revenue. Annual expenditure must be completely covered by annual revenue.
The different types of own resources and the method for calculating them are set out in a Council Decision on own resources. It also limits the maximum annual amounts of own resources that the EU may raise during a year to 1.20 % of the EU gross national income (GNI).
On 26 May 2014, the Council adopted a legislative package, including a new own resources decision, introducing some changes to the own resources system for the period 2014-20. The new own resources rules apply, following the entry into force of this decision on 1 October 2016, retroactively as of 1 January 2014.
Three types of own resources:
Correction mechanisms are designed to correct excessive contribution by certain Member States:
A high-level group on Own Resources was established in 2014 to examine how the system of financing the EU budget can be made more transparent, fair, simple and democratically accountable. Its final report and recommendations were published on 17 January 2017. The Chairman of the Group, former Commissioner and Prime Minister of Italy Mario Monti, handed over the report to the presidents of the European Parliament, the Council and the Commission. On the basis of the report and the recommendations, the Commission will assess if a reform of the own resources system is appropriate.