EditOwn resources emerge as the EU’s new ‘Holy Grail’ amid tough MFF talks
In the final press conference, European Council President António Costa and Commission President Ursula von der Leyen highlighted the need of new sources of budget revenue
As the two-day European Council summit concluded, EU institutions are increasingly viewing new own resources – fresh revenue streams contributed directly by all member states – as essential to funding ambitions for the next long-term EU budget, also known as Multiannual Financial Framework (MFF 2028-2034). Yet national capitals remain wary, prioritising their own fiscal interests
In the final press conference, European Council President António Costa and Commission President Ursula von der Leyen both highlighted the need of new own resources. Costa stressed that an agreement for the long-term budget is needed by the end of 2026 to allow the new MFF to take effect smoothly in 2028. While the official Conclusions focus on Ukraine, the Middle East, competitiveness, and other priorities, the leaders openly acknowledged the push for new own resources outside the formal text.
Why own resources matter now
The EU budget traditionally relies heavily on member states’ GNI-based contributions. With pressures mounting – repaying NextGenerationEU debt, boosting competitiveness and defence, supporting Ukraine, and addressing migration and green transitions – institutions see diversified “own resources” as the solution to avoid politically painful increases in national payments.
Previous attempts, such as an EU-wide tax on airline tickets, failed to gain traction. Current Commission proposals include shares of ETS and CBAM revenues, a levy on non-collected e-waste, tobacco excise elements, and a corporate turnover-based resource. The European Parliament has floated additional ideas like digital services, online gambling, and crypto-asset taxes.
The percentage of national VAT that goes to the EU budget is formally known as the VAT-based own resource. It is one of the established categories of EU “own resources.” A uniform call rate of 0.3% (with reduced rates for a few countries) is applied to each member state’s harmonised VAT base – which is capped at 50% of its GNI – and the resulting amount is transferred directly to the EU budget as a VAT-based own resource.
Von der Leyen and Costa didn’t mention from where the new own resources could come from.
Member states guard their interests
Despite the heads of the institutions putting a brave face, several member states – traditionally “frugal” countries like Germany, the Netherlands, and others – remain sceptical. They worry that new own resources could become de facto additional taxes without sufficient control or rebates, and that the burden would fall unevenly. Discussions in recent months, including at the April informal summit, showed limited support for some Commission ideas.
The stakes could rise further if a Rassemblement National (RN) candidate, such as Jordan Bardella, wins France’s 2027 presidential election. Bardella has announced he will slash by half France’s contribution to the EU budget. A more Eurosceptic French government might resist higher contributions or new supranational revenues, complicating consensus and amplifying calls for fiscal sovereignty in other capitals.
A delicate balancing act
EU leaders will continue negotiations through the remainder of 2026, with key milestones expected in the autumn and a special meeting planned for November. Costa described reaching agreement by year-end as a “collective responsibility.”
For EU institutions, new own resources have become something of a holy grail – a way to secure independent funding and reduce reliance on fractious national budgets. For member states, however, the priority remains protecting national interests and ensuring any new system delivers visible added value to their national economies rather than hidden transfers.
Caption: António Costa (President of the European Council), Ursula von der Leyen (President of the European Commission) during the final presser of the European Council, 19 June 2026. [Council Newsroom]
Updated: June 19, 2026 - 18:12
