EU Warns of Budget Deadlock Over New Revenue
EU budget commissioner Piotr Serafin says member states must agree on new own-resource revenue streams for the 2028-2034 budget.
Updated on Nov. 5, 2026 in Finance — General
EU budget commissioner Piotr Serafin told MEPs on Thursday that national capitals must agree on new taxes and revenue streams for the 2028-2034 budget. National governments, including Germany, have demanded cuts of 8% to the Commission's proposed €2 trillion budget.
Why it matters
Serafin warned that Europe is ill-equipped to face political storms unless the 2028-2034 budget is agreed, and that countries each blocking revenue proposals they dislike could leave the EU with no new own resources at all.
The Commission proposes a €2 trillion budget, with governments seeking an 8% cut, while its proposed levies on e-waste, tobacco and corporations are estimated to raise €66 billion annually versus €13 billion from Parliament's additional proposals. Progress on the new own resources (NORs) remains very limited, and it is unclear which revenue streams national capitals will ultimately accept.
The players
Piotr Serafin
Serafin is the European Commissioner for the EU budget, responsible for steering the Commission's spending and revenue proposals through negotiations with member states and Parliament.
António Costa
Costa is the President of the European Council, brokering negotiations over the EU's next long-term budget between divided national capitals.
Johan van Overtveldt
Van Overtveldt is the chair of the European Parliament's budget committee, who criticized the negotiation box for making little progress on new own resources.
The details
Negotiations over the EU's next long-term budget are being brokered by European Council president António Costa between divided national capitals. Costa has highlighted finding a deal on new own resources as the building block for agreeing the EU budget, while the Commission's proposed levies include taxes on e-waste, tobacco and corporations.
Timeline
Last month: The negotiation box table was issued without Parliament's proposals.
Thursday (November 5, 2026): Serafin warned MEPs about the EU budget shortfall.
2028 to 2034: The long-term EU budget period requiring agreement.
Market Dynamics
The fight over new own resources extends the EU's long-running effort to fund its multiannual budget through revenues beyond national contributions, and progress has been very limited so far. Without agreement on levies such as those on e-waste, tobacco and corporations, the bloc risks relying solely on member-state payments for the 2028-2034 period.
Delays in agreeing new own resources could affect the EU's long-term funding and the stability of spending programs that businesses and public-sector partners rely on. Taxes on corporations and digital services under discussion could also change the cost of doing business in the bloc.
The takeaway
Agreement on new own resources is a prerequisite for the EU budget, and its absence could leave the bloc dependent on national contributions alone. Watch whether national capitals move beyond the current negotiation box to include the revenue streams Parliament has proposed.
Further reading
For broader context on how these budget talks fit into wider economic debates, see Finance — General.
Source note: This article includes information reported by Euractiv DE.
