The members of the European Parliament have given their support to planned measures to lower the share of VAT receipts of member states that go towards the funding of EU projects. According to plans adopted on 16 April 2014, the amount of funds going to the EU from member states would fall from 64 percent to 40 percent of the relevant income of the member states. VAT-based revenues form the basis of around 11 percent of EU funding and there is general agreement that the mechanism needs to be dramatically altered.
EU Parliament Considers Change to EU Funding
24 April, 2014