Global Daily Tax News, New EU Levies Needed To Bolster Budget, Commission Says, (Feb 14, 2025)

The European Commission has said consideration of new taxes to fund the European Union will be necessary when the next long-term Budget discussions begin this year.

The Commission has published a Communication on 'The Road to the next Multiannual Financial Framework'. It outlines the key policy and budgetary challenges that will shape the design of the next Multiannual Financial Framework (MFF). The Commission will present its formal proposal for the next Multiannual Financial Framework in July 2025, with a view to securing a timely agreement before its implementation in January 2028.

The Commission said, "For the EU budget to be fit for our ambitions, ensure the repayment of the borrowing for NextGenerationEU, and, at the same time, provide stable national financial contributions from member states, we need to introduce new own resources. The status quo is not an option. Choices need to be made. The EU must maximize the impact of every euro it spends, focusing on EU priorities and objectives where EU action is most needed."

The Commission said: "The new approach for a modern EU budget should include a plan for each country with key reforms and investments, designed, and implemented in partnership with national, regional, and local authorities. A European Competitiveness Fund should establish an investment capacity to support strategic sectors and critical technologies."

The Commission has launched a 12-week consultation inviting stakeholders and citizens to have their say on the upcoming EU Budget.