The European Commission yesterday proposed to amend the rules on the adjustment of EU budget contributions by member states after the controversy that erupted recently in Brussels.

The new amendments would mean that member states are given extra time to pay any commitments that become due as a result of improved economic performance.

The annual, automatic adjustment this year was unprecedented in size as it factored in re-calculations of Gross National Income (GNI) dating back as far as 1995.

It hit several member states including Malta and the UK – where it was highly controversial – and they ended up owing substantially more to the EU than previously calculated.

On the other hand, due to downward revisions of economic figures, Germany and France are owed a rebate.

Under the amendments, member states would now have until the end of next September to pay this year’s extra contributions instead of until next month. However, the period of grace would only kick in if the additional payment requested is over a certain threshold – more than twice their regular monthly payment.

Following a discussion among the finance ministers, the Commission moved quickly to draft a change in the rules.

The proposals will now be sent to member states for their approval.

Malta has been asked to pay an extra €13 million this year over and above its annual contribution, which usually comes to about €60 million.

The Maltese government immediately declared that it was not surprised at the increase as it had been anticipated by the Ministry of Finance.

The UK objected to its own increase, which saw its contribution go up by almost €2.2 billion.

Although the Commission had at first said that this increase was according to the rules, it agreed to back down on imposing all payments by next month and has now agreed to give more time to the member states involved.

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