EU Proposes Five New Revenue Streams for 2028-2034 Long-Term Budget
Overview of Proposed EU Revenue Streams
BRUSSELS, April 28 (Reuters) - The European Union is discussing how to boost revenues for its seven-year budget to be able to pay for new priorities like defence and competitiveness and service joint debt, without cutting back too much on agriculture and regional aid.
These are the five new revenue streams proposed for the budget for 2028-2034 by the European Commission:
1. Emissions Trading System
Revenue Shift from National Governments
The Commission proposed shifting 30% of CO2 emissions-permit revenue from national governments to the EU budget, excluding road transport and buildings.
Estimated Revenue and Volatility
The Commission estimates this would bring 9.6 billion euros ($11.2 billion) to the EU budget every year, based on a carbon price of 88 euros per tonne, though revenues are uncertain due to price volatility.
2. Carbon Border Adjustment Mechanism (CBAM)
Levy on Imports and Protection for EU Producers
CBAM is a levy importers have to pay on goods from countries with weaker CO2 rules, protecting EU producers subject to stricter and more costly standards.
Implementation Timeline and Revenue Allocation
CBAM has applied since October 2023 and started generating revenue in 2026. The Commission proposed that from 2028, 75% of it be given to the EU.
Expected Revenue Impact
The Commission expects this would produce up to 1.4 billion euros a year for the 2028-2034 period, plus 200 million euros as coverage expands in 2028.
3. Tobacco Excise Duty
Uniform Call-Rate and Revenue Estimate
A new 15% uniform call-rate tobacco duty, paid by EU member states from national budgets, is estimated to raise an average of 11.2 billion euros a year, the Commission says.
4. Non-Collected Electronic Waste
Levy on Non-Recycled Waste
The Commission proposed a levy of 2 euros per kilogram on non-recycled electronic waste, paid directly from national budgets. It estimates this would raise about 15 billion euros a year.
5. Corporate Resource for Europe (CORE)
Levy on Large Companies
Companies with over 100 million euros of annual turnover would pay a fixed annual levy of between 100,000 euros and 750,000 euros. This would raise about 6.8 billion euros a year for the EU budget, the Commission says.
Exchange Rate Information
($1 = 0.8551 euros)
(Reporting by Jan Strupczewski; editing by Philip Blenkinsop and Bernadette Baum)
