On Wednesday 28 January, MEPs on the European Parliament’s Committee on Budgets (BUDG) held a public hearing on the future of the European Union’s own resources under the next Multiannual Financial Framework (MFF) 2028-2034. The discussions demonstrated the difficulty of striking a balance between the need to secure new revenue quickly and the need to be cautious about instruments that are perceived as economically or politically risky.
The aim is both to ensure repayment of the debt incurred with NextGenerationEU starting from 2028 and to improve the EU’s budgetary autonomy without increasing national contributions.
Co-rapporteur Danuše Nerudová (EPP, Czech) reiterated the urgency of the situation.
From 1 January 2028, the EU will have to repay both the principal and the interest on the pandemic debt, i.e. around €24 billion a year.
Without new revenue, “the alternative would be cuts to existing European programmes”, she stressed, calling for own resources that are politically viable, without “hidden loopholes” and compatible with European competitiveness.
Similarly, co-rapporteur Sandra Gómez López (S&D, Spanish) recalled the major role of own resources in a context of severe pressure on national budgets.
In her view, these should enable the EU to finance its priorities without putting “additional pressure on Member States or citizens”, but in a way that is efficient, fair, sustainable and predictable.
The ‘Corporate Resource for Europe’ (CORE) mechanism, which consists of an annual flat-rate contribution from companies other than SMEs operating and making sales in the EU with an annual net turnover of at least €100 million, was one of the main topics of discussion. Professor Veronika Solilova, from the University of Economics and Business in Prague, has estimated that CORE could generate around €7.5 billion a year, with a strong geographical and sectoral focus.
Germany, France, Italy and Spain would account for more than 54% of the total contribution, while manufacturing industry, trade and finance would concentrate almost three quarters of the amounts collected.
But above all, the expert pointed to a number of risks. Because it is calculated on revenue rather than profits, CORE would make companies contribute even when they are operating at a loss. More than 10% of the companies concerned reported negative results in 2023.
In addition, the calculation method used would lead to “multiple accounting” effects within groups, with some companies having to pay the contribution several dozen times, or even more than a hundred times.
Economist and researcher Margit Schratzenstaller spoke of the weaknesses of the current system, dominated by GNI-based contributions, which contribute to a logic of net balances and limit the EU’s fiscal autonomy.
As she put it, the new resources should be envisaged as a “basket”, combining revenues from the Emissions Trading System (ETS), environmental mechanisms or, in the longer term, taxes on aviation, maritime transport, or crypto-assets. (Original version in French by Nithya Paquiry)