Breaking the Own Resources Deadlock: Six Options to Widen the Choice for the European Union's Next Budget
To sustain Europe’s ambitions at home and in the world, while repaying the debt taken on to recover from the COVID-19 pandemic, the European Commission has proposed a budget of almost €2 trillion, equivalent to 1.26% of EU Gross National Income (GNI).
Without additional sources of revenue — “own resources” beyond Member States’ GNI — the EU faces trade-offs between its internal and external priorities, which are increasingly difficult to separate from one another. The debate in the Council is at a stalemate. As EU leaders negotiate the next Multiannual Financial Framework (MFF) 2028-2034, Global Citizen commissioned independent experts to gather ideas on new ways to finance the EU budget. Together, the authors estimate their proposals could raise around €100 billion per year:
A European luxury surcharge: around €42 billion a year
A one-off levy on large fortunes, spread over 30 years: around €26 billion
A VAT on flights and a tax on vacant seats: around €10.5 billion
A European digital services tax: around €6 billion
A levy on digital advertising: around €10 billion
A financial transactions tax: around €8.3 billion
These contributions are offered in the spirit of an open conversation. The options are real and varied, and they invite negotiators to look more widely as they work towards an agreement.