EU member states debate new tax sources for the 2028-2034 budget

France is pushing for new European Union taxes, known as 'own resources', which are expected to generate over 60 billion euros for the upcoming seven-year budget cycle (2028-2034). Paris advocates for these funds to finance strategic priorities such as defense and competitiveness, while simultaneously aiming to reduce national contributions to the EU budget. Securing French support is considered critical for reaching a consensus among member states by the end of this year, a process complicated by upcoming national elections in 2027 in France, Italy, Poland, and Spain.

Currently, the Irish Presidency of the Council of the EU is leading negotiations to determine a realistic revenue level for these new taxes. The European Commission has proposed five categories of 'own resources,' including revenue from the Emissions Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM), and non-recycled plastic waste taxes. While there is broad support for establishing a new revenue package, diplomats note that significant disagreements persist regarding the specific types of taxes to be implemented and their expected financial yields. Member states are currently reviewing a presidency memo ahead of this week's discussions among national representatives to bridge these gaps before the end-of-year deadline.