EU institutions are seeking new funding sources for its long-term budget for the period 2028-2034, amid ongoing disagreements among member states regarding the size of joint spending and increasing financial pressures on several economies, making the distribution of financial burdens a central theme of upcoming negotiations.
European Council President Antonio Costa is chairing the negotiations on the upcoming budget, amid a deadlock in reaching an agreement on the size and sources of funding, while discussions are moving towards imposing new taxes and fees to enable the EU to collect direct revenues, rather than relying more heavily on increasing contributions from national governments.
Own resources and disagreements over proposals
The value of the long-term budget proposed by the European Commission for the period 2028-2034 is around two trillion euros, while new own resources, along with adjustments to existing revenue sources, are expected to provide approximately 58.2 billion euros annually, according to Commission estimates at 2025 prices, aiming to alleviate burdens on national budgets.
Discussions revolve around so-called "own resources," which include proposals to impose contributions on large companies and digital services, as well as levies on tobacco products, carbon emissions, online gambling, and crypto assets. However, these proposals face disagreements regarding their impact on national economies.
According to the report, potential annual revenues from the European Parliament's proposals related to digital services, online gambling, and crypto assets could reach 25 billion euros, although these estimates remain contingent on the approval of the proposals and their implementation mechanisms.
Rising public debt limits maneuvering room
European data reveals the continued rise in public debt levels, with the government debt-to-GDP ratio in the eurozone reaching 88.8 percent in the second quarter of 2026, compared to 87.3 percent in the same period last year, according to data from the European statistical office "Eurostat".
The total government debt of eurozone countries reached approximately 14.4 trillion euros in the second quarter of this year, while the ratio at the EU level stood at 82.9 percent, compared to 81.4 percent a year ago, reflecting disparities in financial situations among member states.
Greece recorded the highest debt ratio in the EU at 140.8 percent of GDP, followed by Italy at 139.9 percent, and then France at 119.1 percent, adding a complex financial dimension to disagreements over the joint budget.
The financing equation between priorities and competitiveness
The EU faces the challenge of balancing the financing of its strategic priorities with maintaining the financial balances of member states. The proposed budget aims to enhance competitiveness and security, fund common priorities, diversify financial resources, and reduce pressures on national contributions.
Conversely, negotiations have shown continued disagreements regarding the size of spending. Germany has called for significant budget cuts and rejected resorting to new joint European borrowing, according to a Euronews report.
The EU's ability to approve new funding sources remains linked to reaching a consensus among member states on the distribution of financial burdens and spending priorities, amid disparities in their economic situations and positions on the size of the joint budget.
Source: Syrian Arab News Agency (SANA)
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