FACTBOX-How does the EU plan to raise money for its next long-term budget?

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:

EMISSIONS TRADING SYSTEM The Commission proposed shifting 30% of CO2 emissions-permit revenue from national governments to the EU budget, excluding road transport and buildings.

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. CARBON BORDER ADJUSTMENT MECHANISM (CBAM)

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. 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.

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. TOBACCO EXCISE DUTY

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. NON-COLLECTED ELECTRONIC 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. CORPORATE RESOURCE FOR EUROPE (CORE)

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. ($1 = 0.8551 euros)

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