The proposed procedure for making the new VAT own resource available to the EU budget is considerably simpler and more transparent than the current VAT-based own resource.

49. Calls for the inclusion of a new own resource financed by contributions paid by Member States participating in the CCI under a modified Own Resources Decision and by assigning the revenue of this new own resource to the expenditure of the CCI, and calls for an amendment of the Own Resources Decisions or, if this is not possible, for the use of the revenue of the Financial Transaction Tax as other revenue in order to compensate such direct contributions;

49. Calls for the inclusion of a new own resource financed by contributions paid by Member States participating in the CCI under a modified Own Resources Decision and by assigning the revenue of this new own resource to the expenditure of the CCI, and calls for an amendment of the Own Resources Decisions or, if this is not possible, for the use of the revenue of the Financial Transaction Tax as other revenue in order to compensate such direct contributions;

50. Calls for the inclusion of a new own resource financed by contributions paid by Member States participating in the CCI under a modified Own Resources Decision and by assigning the revenue of this new own resource to the expenditure of the CCI, and calls for an amendment of the Own Resources Decisions or, if this is not possible, for the use of the revenue of the Financial Transaction Tax as other revenue in order to compensate such direct contributions;

Whereas the European Council of 24 and 25 March 1999 invited the Commission to submit, before 1 January 2006, a report reviewing the operation of the own resources system and, in particular, the effects of enlargement on the financing of the budget; whereas the report should also review the correction of the budgetary imbalances granted to the United Kingdom as well as the granting to Austria, Germany, the Netherlands and Sweden of the reduction in the financing of the budgetary imbalances in favour of the United Kingdom; whereas the report should also address the feasibility of creating new autonomous own resources as well as arrangem ...[+++]ents for the possible introduction of a fixed uniform rate applicable to the VAT assessment bases; whereas the Commission will submit that report before 1 January 2004; whereas, on the basis of that report, the Commission will submit, before 1 January 2005, a proposal for a Council decision which will replace this Decision on 1 January 2007; whereas that decision is to include provisions concerning the replacement of the VAT resource by new, autonomous own resources; whereas those new resources should be directly connected with ordinary citizens and not increase the tax burden they bear; whereas, furthermore, provisions should be included for the gradual phasing-out of the compensatory mechanism established in favour of the United Kingdom; whereas, it should enter into force simultaneously with the beginning of the new financial perspective from 2007 with a view to improving consistency between the revenue and expenditure sides of budgetary policy;

The report shall also address the possibility of modifying the structure of the own resources by creating new autonomous own resources which are directly connected with ordinary citizens and which will not increase the tax burden they bear, as well as the replacement of revenue in accordance with Article 2(1)(c) by such new autonomous resources.