Adopted by the Council in December 2020, the new own resources decision will introduce a series of important changes to the system to be applied retroactively as of 1 January 2021 once the decision is ratified by all Member States. In particular, the own resources ceiling will rise permanently from 1.20 % to 1.40 % of EU GNI to take account of developments such as the smaller total GNI of the post-Brexit EU and the uncertain economic outlook owing to the pandemic. In addition, the Commission will be allowed to borrow on the markets at favourable interest rates on behalf of the EU to finance Next Generation EU (NGEU). The sole purpose of the temporary recovery instrument will be to address the consequences of the pandemic crisis. A temporary increase in the own resources ceiling, worth a further 0.60 % of EU GNI, will be devoted exclusively to guaranteeing borrowing operations for NGEU and apply until December 2058 at the latest. A new own resource based on non-recycled plastic waste will be introduced as of 2021.
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