Negotiations on the Multiannual Financial Framework for 2028–2034 cover not only expenditure but also the issue of financing. Given the high level of investment required to tackle current challenges, the debate on new own resources is being reignited. The study assesses the current proposals from the Commission and the European Parliament, as well as other options, against four criteria: European added value, distributional effects, the capacity to address negative externalities and revenue potential.

A key question is whether revenue generation at EU level, compared with purely national approaches, can enhance the effectiveness and stability of taxation by reducing tax competition, regulatory fragmentation and cross-border tax avoidance. This applies in particular to mobile tax bases. Furthermore, for the political feasibility of new own resources, it is crucial that they strengthen the EU’s fiscal capacity without significantly undermining the revenue base of the Member States. This applies in particular to instruments such as taxes on ultra-high wealth or transactions involving crypto-assets. A broader mix of own resources could also help to distribute the financing burden more evenly across Member States and economic sectors.