EU Weighs New Taxes to Fund 2028–2034 Budget as Debate Grows Over Costs for Consumers

POLITICSEU Weighs New Taxes to Fund 2028–2034 Budget as Debate Grows Over Costs for Consumers
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The European Union is looking for new ways to finance its next long-term budget for 2028–2034. Among the ideas being discussed are new levies on online gambling, digital services and capital gains from cryptocurrencies. The proposals are part of a broader debate over how the EU should fund its growing priorities, including defence, economic competitiveness and the repayment of debt linked to the post-pandemic recovery fund.

According to Bogdan Rzońca, a Member of the European Parliament from Poland’s Law and Justice party, the discussion on new EU-level taxes is still at an early stage and remains highly controversial.

“All proposals concerning new taxes in the European Union are still very much unsettled and are being strongly debated. At the moment, I see more opponents than supporters,” Rzońca said in an interview with Newseria. In his view, the issue is particularly sensitive because the next multiannual financial framework is expected to face pressure from new priorities, including increased spending on EU defence and the repayment of loans taken out to finance national recovery plans.

In July 2025, the European Commission presented a draft proposal for the EU’s next long-term budget. It included ideas for creating new “own resources” for the Union. These would include revenues from the EU Emissions Trading System, the Carbon Border Adjustment Mechanism, excise duties on tobacco products, fees related to uncollected electronic waste and contributions from large companies.

The Commission estimates that these new sources of income could generate around €58.5 billion annually, measured in 2025 prices.

During a plenary session in May, the European Parliament discussed alternative ways to finance the EU’s long-term budget. In a position adopted in April, MEPs supported the Commission’s plan to introduce new sources of revenue in order to reduce the EU budget’s dependence on direct contributions from member states. Parliament also suggested that if member states reject the Commission’s proposals, the EU should consider other options, including a digital services tax, a levy on online gambling, an expanded CBAM mechanism and a tax on capital gains from cryptocurrencies.

Rzońca warned, however, that such measures could ultimately be passed on to ordinary citizens.

“New sources of revenue will hit voters in individual EU countries. Those who vote will not be satisfied with new taxes, so this debate must become more realistic. We should rather be talking about savings, not new taxes,” he said. “If there is a new tax, there is no possibility that it will not burden the average resident of the European Union.”

According to Euronews, the European Commission estimates that new taxes on digital services, online gambling and cryptocurrencies could bring the next EU budget almost €11 billion in additional annual revenue.

Rzońca argues that the Commission’s proposals are not yet sufficiently precise and are likely to face resistance. The final decision, he noted, will depend on the European Parliament and the Council of the EU.

“I am convinced that savings can be found in this two-trillion-euro budget,” he said. In his opinion, some EU programmes are too ideological and insufficiently connected to economic priorities. He argued that the EU’s main challenge today is the economy and that spending should be reviewed through that lens.

The Polish MEP also questioned whether the EU can continue to finance extensive support programmes for the world’s poorest countries, including in Africa. He pointed to the “Global Europe” programme, which is intended to support, among others, candidate countries and external partners, and for which €200 billion has been planned in the next budget.

Rzońca also criticised what he sees as excessive spending connected with the European Green Deal.

“I believe that the Green Deal and everything we do in this area could bring savings if we do not approach these expenditures so doctrinally. The Green Deal is very costly for individual countries, producers and consumers living in the European Union,” he said.

He also referred critically to spending on what he described as ideological policies, including LGBTIQ-related programmes and abortion funding. In his view, a broad review of EU expenditure would be justified and could produce positive results.

The debate also touches on the taxation of major technology companies. Rzońca said that companies earning money in the EU should contribute to public finances, but stressed that any tax rules should be agreed at the European level and applied consistently across the single market.

“Anyone who operates and earns money in the European Union market should in some way be subject to taxation. But all of this should be agreed and function within the framework of the common European market,” he said.

He warned that selective measures targeting particular sectors or business models could discourage investment. Instead, he called for equal conditions for investors across all EU member states and cautioned against overregulation.

The discussion over the EU’s future revenue sources is expected to be lengthy and politically difficult. According to Rzońca, final decisions on the revenue side of the next multiannual financial framework are likely to be made toward the end of next year.

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