The European Commission is preparing to unveil a sweeping new proposal aimed at expanding its independent sources of revenue, including a tax on large corporations operating within the European Union. The move is part of a broader effort to secure sustainable funding for the EU’s €1 trillion-plus common budget amid growing spending demands.
According to a draft proposal obtained by the Financial Times, the new measure — dubbed the “Corporate Resource for Europe” — would impose an annual levy on companies with a net turnover exceeding €50 million, regardless of their country of origin. A bracket system would determine contribution levels, with higher revenue earners paying more.
The proposal is expected to be formally presented next week, alongside additional revenue-raising ideas such as:
- A share of increased tobacco excise duties
- A levy on non-recycled electronic waste
- A handling fee for long-distance e-commerce deliveries, which would mainly affect imports from China
While the Commission has proposed EU-wide levies in the past — including a financial transaction tax — these efforts have typically faced resistance from member states. To take effect, the new corporate tax plan would require unanimous approval from all EU countries.
Mounting Budgetary Pressures
The Commission argues that extraordinary demands, including rising defence expenditures, growing debt servicing costs, and climate transition efforts, necessitate new and stable revenue streams. The EU’s existing seven-year budget relies heavily on national contributions, with limited funds coming from customs duties and VAT.
Additional proposals under review include increasing:
- Revenues from the EU emissions trading system (ETS)
- Levies on carbon-heavy imports through the upcoming Carbon Border Adjustment Mechanism
- Charges on non-recycled plastic waste, which could rise beyond the current €0.80/kg rate
Some more controversial ideas — such as carbon taxes on home heating and road transport or a digital services tax opposed by the United States — appear to have been dropped from the draft.
Corporate Pushback Expected
The proposal is likely to face strong opposition from corporate leaders and member states concerned about competitiveness. Business groups warn that additional levies come at a time of economic stagnation and high energy costs in Europe. JPMorgan Chase CEO Jamie Dimon recently cautioned European executives that the region’s businesses are falling behind their U.S. and Chinese counterparts.
Next Steps
The final details of the proposal, including precise revenue targets, remain under internal discussion, as indicated by bracketed figures in the draft document. The plan will be released in tandem with spending proposals for the EU’s next multi-year budget framework.
A European Commission spokesperson declined to comment on the proposal before its official release. However, officials note that any successful implementation would mark a significant shift toward financial autonomy for the EU — a goal long championed by the Commission.
