EU Commission President von der Leyen presents a proposed budget of 2 trillion euros for the Union - EU's Proposed New Budget Stands at an Estimated 2 Trillion Euros
**Proposed New Revenue Sources and EU Budget Framework for 2028-2034**
The European Commission, under the leadership of President Ursula von der Leyen, has unveiled a new budget framework for the years 2028 to 2034, aiming to bolster the EU's strategic autonomy and address contemporary economic and political challenges [1]. The Commission proposes new EU-wide taxes as additional revenue sources to supplement the traditional direct contributions from member states [1].
**Key New Revenue Sources**
The proposed new revenue sources include a levy on corporate profits, an excise duty on tobacco products, and a tax or charge linked to the disposal of electronic waste [1]. These measures are designed to give the EU its own, independent revenue streams, moving beyond the current system where the budget is mainly financed by national contributions and traditional revenue sources [1].
The total proposed budget for the seven-year period is between €1.816 trillion and €2 trillion, reflecting a rise in EU spending to between 1.15% and 1.23% of the bloc’s gross national income [2][3]. However, the exact annual contribution expected from these new revenue sources is not specified in the available reports [1].
**Financing the Budget Increase and National Contributions**
The EU Commission plans to finance the budget increase via new revenue sources, with "new own resources" expected to bring in 58.5 billion euros annually [4]. The Commission also proposes that each EU country creates a National Reform and Investment Plan (NRP) to show reforms and investments from 2028 to 2034 [5].
The EU budget is primarily financed by contributions from member states, based on each country's gross national income (GNI) [6]. Germany, as a large exporting country, is expected to make the highest national contributions [7].
**Next Steps and Controversies**
These new revenue sources are part of a broader political and budgetary strategy to strengthen the EU’s financial independence and resilience [1]. The adoption and implementation of these taxes require approval by member states and the European Parliament, and are likely to be the subject of intense negotiation in the coming months [1].
The Parliament has stated it will not accept any restriction of its oversight or renationalization of central EU policies [8]. Criticism has also been voiced regarding the planned National Reform and Investment Plans and potential restrictions on its oversight and democratic control over EU spending [9].
In addition to the proposed new taxes, the EU Commission plans to earmark less money to react quickly and effectively to newly emerging developments, and to finance EU institutions such as Frontex and Europol from a single large fund [10]. The area of defense and space receives 131 billion euros, five times the current amount [11].
The Corona Recovery Fund, established in 2021, has an annual repayment of 24 billion euros at current prices, amounting to total costs of 168 billion euros [4]. Repayment of the Corona Recovery Fund will begin in 2028 and continue until 2058 [4].
The Commission also plans to provide 100 billion euros to support Ukraine, in addition to ongoing aid programs [12].
Lengthy and complex negotiations are expected for the EU budget proposal [13]. However, with the proposed new revenue sources and increased budget, the EU aims to mitigate economic damage caused by the pandemic and modernize the economy, while strengthening its strategic autonomy and fiscal capacity.
The European Commission, led by President Ursula von der Leyen, proposes new EU-wide taxes such as a levy on corporate profits, an excise duty on tobacco products, and a tax on electronic waste disposal as part of the general-news, business, politics, and employment policy discussions, aimed at giving the EU independent revenue streams [1]. The Commission's National Reform and Investment Plan (NRP), which requires each EC country to outline reforms and investments from 2028 to 2034, also falls under the umbrella of employment policy [5]. The new revenue sources are likely to cause controversies and lengthy negotiations, as they require approval from member states and the European Parliament [1].
