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 1.23 % of the EU gross national income (GNI).
Three types of own resources:
Other sources of revenue (around 1 %) include tax and other deductions from EU staff remunerations, bank interest, contributions from non-EU countries to certain programmes, interest on late payments and fines.
Correction mechanisms are designed to correct excessive contribution by certain Member States:
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. However, the current system continues to apply until this new Council Decision is approved by every Member State (in most cases, ratified by their national parliaments). The new own resources rules will then apply retroactively as of 1 January 2014.
The following principles will apply to the 2014-20 MFF:
In addition, a high-level group is in charge of reviewing the own resources system. On the basis of the results of this work, the Commission will assess if a new reform of the own resources system is appropriate.