Select Committee on European Communities Sixth Report


APPENDIX 3

Glossary
Budgetary authority The Council of Ministers and the European Parliament, acting as defined in the Treaty (see paragraph 29)
Budgetary balanceThe difference between payments made by a Member State to the EU budget and expenditure made by the EU in that Member State (also referred to as "net contribution")
CAPCommon Agricultural Policy
CEEC10The ten Central and Eastern European countries which have applied for membership of the European Union
Compulsory expenditureExpenditure necessarily resulting from the Treaty or from acts adopted in accordance with it
DegressivityThe principle of progressive reduction (used in relation to agricultural compensatory payments)
EU15The existing Member States of the European Union
EUROSTATThe statistical office of the European Commission
Fifth resourceTerm used to refer to any possible new own resource
First resourceAgricultural and sugar levies
Fourth resourceContributions based on GNP
Generalised correction mechanismGeneral reassessment of net contributions
GDPGross Domestic Product
GNPGross National Product
Gross contributionThe amount which a Member State contributes to the Community budget
IIAInter-institutional agreement (see paragraph 28)
Juste retour Literally, "fair return": the concept that each Member State should get back from the EU in financial terms the equivalent of what it puts in
Net contributionThe difference between payments made by a Member State to the EU budget and expenditure made by the EU in that Member State (also referred to as "budgetary balance/imbalance")
ORDOwn Resources Decision (see paragraph 25)
Own resourceA source of funding for the Community budget (see paragraph 26)
ProgressivityThe principle that those with higher incomes should pay a higher proportion of their income
Purchasing power parityExchange rate such that the prices of identical goods and services are equalised in different countries: used to compare purchasing power
RegressivityThe outcome that those with lower incomes pay a higher proportion of their income (the opposite of progressivity)
Second resourceCustoms duties
Third resourceContributions based on VAT
Tobin taxA tax on all financial transactions in international money markets (proposed by Professor James Tobin of Yale University)
Traditional own resourcesThe first and second resources (qv)
WTOWorld Trade Organisation (the successor to GATT, the General Agreement on Tariffs and Trade)



 
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