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European Communities (Finance) Bill

I shall make progress and get some facts on the record about the effects of the own resources decision. Appropriation ceilings will be frozen at the levels set for the 2000 to 2006 budget period. The ceiling on annual appropriations for payments is 1.24 per cent. of EU gross national income, and for appropriations for commitments it is 1.31 per cent. of EU GNI. Appropriations for commitments are forecast to fall below 1 per cent. of EU GNI during the budget period. As I said earlier, the current arrangements for VAT-based contributions will be amended, with the maximum call-up rate reduced to 0.3 per cent. By increasing residual contributions based on GNI, that will further develop the transparency and the fairness of the budget. Between 2007 and 2013 only, the maximum rate of call on VAT-based contributions will be further reduced for Austria, Germany, Netherlands and Sweden, to 0.1 per cent. for Netherlands and Sweden, 0.15 per cent. for Germany and 0.225 per cent. for Austria. For the same period, gross reductions in GNI contributions of €605 million per annum for Netherlands and of €150 million per annum for Sweden are introduced. Both those amounts are in 2004 prices.