EU weighs airline and sugar taxes to fund 2028‑2034 budget

The European Union is examining new own‑resource revenues to close the financing gap of its 2028‑2034 multi‑annual budget, estimated at about €2 trillion. Draft proposals include a levy on airline tickets – potentially based on distance, travel class or estimated CO₂ emissions – and a contribution on products high in added sugar, though the exact definitions and rates have not been set.

The Commission’s July 2025 plan foresees these measures generating roughly €44 billion a year, while the European Parliament is pushing for up to €60 billion. Without additional revenues, the Union could face budget cuts of around €66 billion annually, about 40 % of the proposed spending, jeopardising funding for defence, competitiveness, technology, border security, aid to neighbouring states and repayment of COVID‑19 recovery debt. Member states are divided, with net‑contributing countries such as Germany and the Netherlands urging restraint, while net‑receiving countries argue for preserving agricultural, infrastructure and cohesion funds.

The discussion also notes possible impacts on Romania, where higher air‑fare costs and increased food prices could affect consumers and local producers.