European Union seeks new revenue sources for 2028–2034 budget

The European Union is negotiating new revenue sources for its 2028–2034 seven-year budget. European Commission President Ursula von der Leyen has indicated that without new own resources or increased member state contributions, the proposed budget would need to be reduced by 40 percent.

Currently, the Carbon Border Adjustment Mechanism (CBAM) and a levy on uncollected electronic waste appear to have the broadest support among member states. The Commission has previously proposed five potential sources—emissions allowances (EU ETS), carbon border taxes, electronic waste fees, tobacco taxes, and a contribution from large corporations (CORE)—which could collectively generate approximately 58.5 billion euros annually. Additionally, the European Parliament has suggested taxes on digital services, online gambling, and crypto-asset capital gains.

Negotiations remain complex due to diverging national interests. Germany opposes the CORE corporate levy, several Central and Eastern European countries oppose using emissions allowance revenues, and Malta opposes a tax on online gambling. European Council President António Costa aims to reach an agreement on the revenue package by October to facilitate broader budget consensus.