Key facts
- EU leaders are deadlocked on funding the bloc's next long-term budget.
- New EU-wide taxes are being explored to avoid increasing national contributions.
- Potential new revenue sources include taxes on large companies, digital services, tobacco, carbon emissions, and online gambling.
- The European Parliament proposed taxes on digital services, online gambling, and crypto assets, potentially raising €25bn annually.
- The Corporate Resource for Europe (CORE) proposal targets large companies with over €100m net annual turnover.
- A proposal to divert 30% of EU Emissions Trading System (ETS) revenues to the EU budget is under consideration.
European Council President António Costa is seeking new EU-wide taxes to fund the bloc's next long-term budget after leaders failed to agree on national contributions at a recent summit. With national governments reluctant to increase their payments, Costa is exploring various revenue streams, including levies on large companies, digital services, tobacco, carbon emissions, and online gambling.
The European Parliament has proposed taxes on digital services, online gambling, and crypto assets, which could generate up to €25 billion annually. However, some proposals, like the Corporate Resource for Europe (CORE) targeting large companies, face opposition from member states concerned about competitiveness. The Commission is considering combining CORE with a digital levy that would primarily target large foreign companies.
Other potential sources include diverting 30% of revenues from the EU's Emissions Trading System (ETS), a move opposed by Poland, and a 15% call rate on tobacco excise duties (TEDOR), which Luxembourg opposes due to fears of fueling the black market. A tax based on electronic waste is largely uncontroversial, while a crypto capital gains tax is seen as difficult to implement. Greece has proposed coordinating 6G spectrum auctions, but member states have historically resisted harmonizing spectrum allocation.