The European Commission has published a draft Council decision on the system of own resources of the European Union, extending and revising its earlier proposals from 2021 and 2023. The objective is to ensure sustainable financing of common EU policies, to repay the Next Generation EU programme, and to enhance the flexibility of the EU budget in responding to crises. The proposal maintains contributions based on the Carbon Border Adjustment Mechanism (CBAM) and the EU Emissions Trading System (EU ETS), while introducing three new own resources: the Corporate Europe Resource (CORE), a resource based on uncollected electronic waste, and a resource derived from excise duties on tobacco (TEDOR).
Corporate Europe Resource (CORE)
The central element of the CORE proposal is the establishment of a new own resource for the EU budget, consisting of an annual lump-sum payment by companies with tax residence in the EU and permanent establishments of third-country entities based in the EU, whose annual net turnover exceeds EUR 100 million. Entities that generally do not pursue commercial activities for profit, such as certain government bodies, international organisations, or non-profit organisations, are excluded.
The CORE contribution is based on net turnover according to the following tiered system:
The fee would be collected by Member States on behalf of the EU. The proposal empowers the Council to adopt implementing measures, including reporting requirements, administrative provisions, late payment interest, audits, and penalties for non-compliance. CORE replaces the previous proposal based on Pillar I and the temporary statistical resource linked to corporate profits.
New Resource Based on the Quantity of Uncollected Electrical and Electronic Equipment
This resource is calculated from the weight of uncollected electrical and electronic equipment in each Member State. The contribution amounts to EUR 2 per kilogram of uncollected e-waste. The weight is calculated as the average annual weight of equipment placed on the market during the previous three years (N-1, N-2, N-3), minus the weight of e-waste collected in year N. This resource is expected to generate approximately EUR 15 billion annually.
Resource Based on Tobacco Excise Duties (TEDOR)
This resource corresponds to 15% of revenues from the minimum excise duty rate on tobacco and tobacco products released for consumption in the Member States. The estimated annual revenue from this source is approximately EUR 11,2 billion.
Approval and Implementation Process
The proposal requires unanimous agreement of the Member States in the Council, following consultation with the European Parliament. If adopted, the changes would take effect on 1 January 2028, with the CORE contribution applying from 1 January of the first calendar year following ratification by the Member States in accordance with their constitutional requirements. We will keep you updated on the further developments. developments unfold.
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