United Nations Scales of Assessments

The European Union has asked the United Nations Secretariat to model alternative possibilities for the Scale of Assessments methodology for 2007-2009. The EU proposes the UN scale methodology to be based on each nation's capacity to pay and that the current method of scales calculations, in force until the end of 2006, be improved so that it would be based on a 6 year base period (currently 3+6 years) and so that there would be three different levels for the rebate that is given to countries with relatively low income per capita. In the EU model, large emerging economies would pay a slightly larger share than they currently do, as the EU feels would be appropriate due to their strong economies. The scale discussions are ongoing in the Fifth Committee in New York.

The European Union proposes that calculations be made taking into account the following elements:

1. Use of GNI data

- The GNI data to be converted to a common currency using market exchange rates, except where that would cause excessive fluctuations and distortions in the income of some Member States, when price-adjusted rates of exchange or other appropriate conversion rates should be employed, taking due account of General Assembly resolution 46/221B of 20 December 1991;

2. A single statistical base period of 6 years

3. Improve the LPCIA (low per capita income adjustment) by bringing the overall strength of an economy in as a factor.

The EU proposes that the LPCIA be improved so that the gradient for the large economies whose share of the world economy exceeds 1 % would be 60 %. For the LDCs the gradient would be increased to 85%. For all other countries the gradient applied would remain at the current level of 80%.

4. Any agreement to a ceiling for the largest contributor should take into account the capacity to pay and the circumstances under which it was agreed upon in 2000

- A maximum assessment rate calculated on the basis of 22 % and 25 %

5. Debt burden adjustment

- Calculations on two options concerning the debt burden adjustment:
a) Including the debt burden adjustment employed in the scale of assessments for the period 1995-1997 (the debt stock approach),
b) Excluding the debt burden adjustment;

6. Minimum assessment rate of 0.001%, max for LDCs 0.01%.



Contacts in the Finnish EU Presidency:

Ambassador Tom Grönberg, tel. (212) 355-2100, extension 261
First Secretary Katja Pehrman, tel. (212) 355-2100, extension 249
Advisor, Senior Budget Secretary Päivi Valkama, tel. (212) 355-2100, ext. 275

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• EU Presidency Statement - United Nations 5th Committee: Scale of Assessments of UN Expenses (8/10/2007)
• EU Presidency Statement - Programme Budget for the Biennium 2006-07 (30/11/2006)
• EU Presidency Statement - Improving the Financial Situation of the UN  (9/11/2006)
• EU Presidency Statement - Programme Budget for 2006-2007 (6/11/2006)
• EU Presidency Statement - Fifth Committee: Scale of Assessment (9/10/2006)