Brussels eyes 17 bln euros in annual revenue from own resources

Europe Materials 23 December 2021 06:52 (UTC +04:00)
Brussels eyes 17 bln euros in annual revenue from own resources

The European Commission on Wednesday unveiled plans for a new revenue stream through its own resources from which it plans to make up to 17 billion euros annually for the European Union (EU) budget as of 2026, Trend reports citing Xinhua.

The Commission said in a statement that its package of own resources will help repay the funds raised by the EU to finance the grant component of NextGenerationEU, a fund of some 800 billion euros to reboot the EU economy. The new own resources should also finance the Social Climate Fund.

The revenue stream will come from emissions trading, resources generated by the proposed EU carbon border adjustment mechanism, and the share of residual profits from multinationals' taxing rights.

"At cruising speed, in the years 2026-2030, these new sources of revenue are expected to generate on average a total of up to 17 billion euros annually for the EU budget," the Commission said in its statement.

"With today's package, we lay the foundations for the repayment of NextGenerationEU and provide essential support to the Fit for 55 package by putting in place the financing of the Social Climate Fund," said European Commissioner in charge of Budget and Administration Johannes Hahn.

Once adopted, the package will strengthen the reform of the revenue system started in 2020 with the inclusion of the non-recycled plastic waste-based own resources.

The Fit for 55 package aims to reduce net greenhouse gas emissions in the EU by at least 55 percent by 2030, compared to 1990, to stay on track to reach climate neutrality by 2050. It includes a revision of the EU Emissions Trading System.

Under the current system, most revenues from the auctioning of emission allowances are transferred to national budgets. The proposal is that 25 percent of the revenues from EU emissions trading flow directly into the EU budget.

The Commission also plans to allocate to the EU budget 75 percent of the revenues generated by the carbon border adjustment mechanism as well as an additional 2.5 billion euros to 4 billion euros per year from the taxation of multinationals.