BUDGET: COMMISSION APPROVES REVISED BUDGET FOR 2002.

The new Council Decision 2000/597 (see European Report 2660) proposes the following changes, in relation to the earlier Council Decision (94/728):- The application of the European System of Accounts 95 (ESA 1995) is extended to the Budget and own resources, which has an affect on the GNP base calculation and hence on the Member States' GNP resource payments.- The percentage of traditional own resources the Member States are allowed to retain to cover collection expenses is increased from 10 to 25%.- The maximum VAT call-up rate is reduced from one to 0.75% in 2002 (and to 0.50% in 2004). The new rules for funding the British rebate further reduce the uniform VAT call-in rate in relation to the previous Council Decision.- The British rebate calculation method is amended so as to neutralise the United Kingdom's net gains ("exceptional gains") as a result of the higher percentage of traditional own resources retained by the Member States. Adjustments are in the pipeline in anticipation of future EU enlargements. The new calculation method applies from 2001 onwards. However, as the British compensation for one year is paid in the following one, the outcome of the new calculation method is catered for and funded in 2002.- The contributions Germany, Austria, the Netherlands and Sweden make to funding the British rebate is down one-quarter from its normal level. This reduction is being offset by the other Member States, excluding the United Kingdom.The other component of the Preliminary Draft Amending Budget, including in the budget a...