Own resources: “It’s high time to make progress on the way we finance the EU”

Today, the European Parliament rapporteur on own resources Valérie Hayer (Renaissance, France) presented in the Committee on Budgets her proposals for new own resources.

Following the recent conclusion of the negotiations on the reform of the carbon market (ETS) and the carbon border adjustment mechanism (CBAM), Renew Europe calls on the Member States to urgently agree on their introduction into the EU budget as own resources, along with a part of the revenues generated by the OECD global tax agreement. In this regard, the Member States must respect the legally binding agreement sealed with the Parliament in 2020.

However, those new own resources will not generate a sufficient amount to fully cover the repayment of the EU recovery plan. Moreover, new costly responsibilities and policies have to be undertaken by the EU, from achieving the Green Deal to ensuring our open strategic autonomy in key sectors. Therefore, new additional own resources are required to beef up our Union budget.

In her report, Ms. Hayer suggests five new own resources:

1. A “Fair Border Tax”, which would require companies wishing to sell in the EU market products made by extremely poor workers on the other side of the world to pay a duty to the EU. This tax would correspond to the difference between workers’ wages and the extreme-poverty threshold in the country of origin.
2. Develop corporate taxation, through the ongoing BEFIT directive which will aim at harmonising corporate tax bases in the EU. In this regard, Valérie Hayer considers that this resource could encompass financial services.
3. Taxation of cryptocurrencies, a sector that is poorly regulated benefitting from the different applicable regimes between the Member States. Options open to discussion include taxing capital gains from crypto-asset activities, a tax on crypto-asset transactions or a tax on crypto-asset mining and trading determined by their electricity consumption and environmental impact.
4. A digital levy, if the OECD global tax agreement fails. It is time for all actors to pay their fair share.
5. New statistics-based own resources, such as a contribution depending on the level of the gender pay gap in the Member States, or the recycling share of bio waste.

On top of that, Valérie Hayer asks for a new general principle to be established: any revenue generated by a European policy, the implementation of regulations or the use of infrastructures financed by the European Union should go to the EU budget.

Valérie HAYER, Renew Europe spokesperson for budgetary matters and co-rapporteur on the report “Own resources: a new start for EU finances, a new start for Europe”, said:

“It’s high time to make progress on the way we finance the EU. I oppose any attempt to make taxpayers and citizens pay for the repayment of the EU debt, either through higher taxes at home or through less funding for beneficiaries of EU policies. Those who don’t pay their fair share of taxes should contribute. Therefore, those who oppose new own resources are the best defenders of the first two options.”

Her report will be voted in the Committee on Budgets on 1-2 March 2023, before the vote during the March II plenary. It will provide guidance to the European Commission, which is expected to come with new proposals in September 2023.