STRASBOURG — The EU needs more of its own taxes to raise revenue, allowing it to make debt repayments while continuing to fund farmers and regional development without increased contributions from member countries, European Commission President Ursula von der Leyen said Wednesday.
The EU must agree on its 2028–2034 long-term budget by the end of 2027, though leaders hope to seal a deal by the end of 2026. There will be tense negotiations between EU countries such as Germany, which want to reduce the contributions from national coffers to the common budget, and the European Parliament, which on Wednesday proposed raising the budget beyond the €2 trillion mark.
An added complication in these budget talks is that the EU is due to begin repaying the €390 billion it borrowed through common debt for its Covid-19 recovery package. Paying that back will have to be squared with continuing to support farmers, invest in poorer regions and fund industry, innovation and defense.
“New own resources are indispensable,” von der Leyen said, using the EU term for raising its own money. “Without them, the choice is stark: higher national contributions or lower spending capacity. In other words, less Europe exactly where Europe needs to do more.”
The Commission in July proposed a package of measures that would increase the amount of own resources. It included levies on carbon-intensive imported goods and taxes on carbon emissions produced in the EU, as well as non-recycled electronic waste, tobacco consumption and corporate profits. Together, they would raise €66 billion per year, the Commission says.
“This is the only credible way to match Europe’s priorities with Europe’s means,” von der Leyen said Wednesday as she addressed MEPs.
In its budget position, the European Parliament calls for taxes on online gambling, tech giants and crypto firms.
New tax proposals have traditionally been rebuffed by countries, which oppose Brussels having power over fiscal and taxation policy. However, at a meeting in Cyprus last week, national leaders tasked the Commission with exploring Parliament’s proposed new taxes.
Current own resources include customs duties and a levy on non-recycled plastic packaging waste.
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