The European Union is exploring new ways to fund its next long-term budget as member states remain divided over how to share the cost. European Council President António Costa is looking at taxes on large companies, digital services, tobacco, carbon emissions and online gambling. The aim is to raise money for shared EU goals without placing too much pressure on national budgets.
The issue gained fresh attention after EU leaders failed to reach an agreement at last week’s summit. National governments are reluctant to increase their payments to the common budget. Costa says new sources of EU income could help the bloc fund its plans while keeping national contributions at a reasonable level.
The debate centres on who should pay for Europe’s future. Some proposals would ask large firms and polluting industries to contribute more. Others could affect sectors such as technology, tobacco and online gambling. EU leaders must decide which ideas can win support across the bloc.
Costa has said the EU needs new revenue sources to protect its shared priorities. He wants member states to find a deal that balances investment needs with limits on national spending. However, governments disagree on how the money should be raised and how the costs should be shared.
Ireland has offered a possible way forward. Irish Minister of State for European Affairs Thomas Byrne said any new EU revenue source should meet three conditions. All member states must agree to it, it must raise a large amount of money, and it must be ready by January 1, 2028.
The proposal has faced criticism from some members of the European Parliament. Parliament has called for taxes on digital services, online gambling and crypto assets. It estimates that these measures could raise up to €25 billion a year.
Member of the European Parliament Danuše Nerudová criticised Ireland’s plan. She said it did not include Parliament’s proposals, despite support from several member states. The disagreement shows how hard it may be to find a plan that meets the needs of EU governments and lawmakers.
One key idea is the Corporate Resource for Europe, or CORE, proposal. It would require large companies to contribute to the EU budget. The European Commission says the measure would apply only to firms with annual net turnover above €100 million.
The Commission argues that the payment would generally be smaller than the bonuses paid to senior executives at these companies. However, some member states fear extra costs could harm European business and make the bloc less competitive.
The EU is also considering whether to link the company contribution with a tax on digital services. Such a move could cause tension with the United States, as many of the world’s largest technology firms are American. A broad tax based on a high financial threshold could cover large companies across several sectors and countries.
Another proposal would direct 30% of revenue from the EU Emissions Trading System to the common budget. The system requires major polluters to pay for carbon emissions. Supporters say part of this income could help fund EU-wide projects.
Poland has opposed the plan, highlighting a wider dispute over who controls the money raised from carbon costs. Some governments may prefer to keep this revenue at home rather than send it to Brussels. The issue shows that even taxes linked to pollution can lead to disagreement over national and shared priorities.
The Carbon Border Adjustment Mechanism is another possible source of income. It puts a carbon price on certain imported goods, including steel and cement. The goal is to make sure imports face carbon costs comparable to those paid by EU producers. Supporters say this can protect European firms from competition with goods made under weaker climate rules.
EU leaders are also looking at a contribution linked to electronic waste. Under this plan, each member state could pay based on the amount of electronic waste it generates. The proposal has faced less opposition so far, although officials still need to settle practical details.
The talks remain difficult as governments weigh the need for shared investment against concerns about costs and business growth. New EU revenue sources could reduce reliance on payments from national budgets, but no final deal has been reached.
The next step will be to find a plan that member states can support before the new budget period begins in 2028. The outcome will shape how the EU pays for its common goals and how financial responsibility is shared among governments, businesses and industries.
