Some Reflections on the Future of the EU’s Revenue System

Abstract

The debate on fundamentally restructuring the EU’s revenue system is decades old but has not brought about more than incremental reforms up to now. In July 2025, the European Commission suggested five new own resources as part of its proposals for the Multiannual Financial Framework (MFF) for 2028 to 2034: new own resources based on revenue from the EU Emission Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM) and non-collected e-waste; the corporate resource for Europe (CORE); and a tobacco excise duty own resource (TEDOR). In the ongoing negotiations on the next MFF, the implementation of new own resources should be a priority. Their introduction could rest on a two-pronged strategy: for the MFF 2028–2034, the focus should be – with some modifications – on the Commission proposals, which could be mobilised quickly. Further tax-based own resources, which could rest on aviation and shipping, cryptocurrencies and net wealth, could be prepared for the post-2034 MFF.