New budget resources to meet new EU challenges

Over 94% of the EU budget goes straight back to its citizens: to regions, cities, farmers, businesses and young people. A majority of the budget comes from member state contributions.

The rest is drawn from customs and agricultural duties and a percentage of VAT. But Parliament says it’s not enough to match the EU’s ambitions and to face new challenges like migration, security and climate change.

The European Union’s budget is going to be too squeezed and the European Union won’t be able to face up to major challenges in the future. MEPs stress that EU taxpayers should not have to pay more. The EU needs to find new own resources.

Among Parliament’s proposals are a financial transaction tax, a digital sector tax, and a share of corporate tax revenue or environmental taxes. New own resources could mean a reduction in the direct contributions EU countries make to the budget. This is a very ambitious task, bearing in mind that the previous negotiations took two and a half years and we have nine months to reach a final agreement. This means that we need a strong political will, because it’s a worthy cause.

Source: Europarltv