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The forthcoming draft of the EU’s long-term budget will include an “ambitious” proposal on new EU taxes, known as own resources, Irish Minister for European Affairs Thomas Byrne told journalists on Monday.
The European Union is currently negotiating its long-term budget for 2028–2034, with the Irish government chairing the talks. EU institutions aim to reach a deal by the end of the year, with the package expected to include new taxes for the first time in the bloc’s history.
The draft text is expected to be presented before mid-October, ahead of the European Council meeting in Brussels. It will serve as a basis for further discussions among EU leaders during the summit.
“The Irish Presidency is confident to deliver a good own resources package,” the minister said, specifying that all own resources proposed by the European Commission and the European Parliament are still on the table.
“We don’t rule out any own resource,” Byrne told journalists.
The own resources under consideration include the Carbon Border Adjustment Mechanism (CBAM), a parcel handling fee, an online gambling tax, tobacco excise duties, the Corporate Resource for Europe (CORE), non-collected e-waste, the EU Emissions Trading System (ETS), a digital levy, and a tax on crypto assets.
Opposing camps
In July 2025, the European Commission proposed a €2 trillion EU budget, which is now being negotiated by the bloc’s 27 member states. The negotiations have since divided countries into two main camps.
The “Friends of Cohesion” group is seeking to protect funding for agriculture, fisheries and regional development, which would be reduced under the Commission’s proposal compared with the current budget. The group comprises 17 member states, including Spain, Italy, Poland, Hungary and Portugal.
The “frugal” camp, composed of German, Finland, Austria and Denmark wants to significantly reduce the overall budget and redirect spending towards priorities such as competitiveness and defence. They have increasingly portrayed themselves as the “modernisers” and have also expressed strong reservations about the proposed own resources, arguing that they would become net contributors under the new system.
In June, Cyprus, which was then chairing the member states’ discussions, proposed a compromise involving a €32.8 billion cut, focused on programmes favoured by the modernisers.
German Chancellor Friedrich Merz has repeatedly said that the budget still requires significant cuts and has expressed skepticism about the proposed own resources.
“Own resources are part of the solution,” Byrne said, arguing that a deal on the whole budget must be reached by the end of the year.
“If we don’t have a agreement by the end of the year, that would be disappointing for the beneficiaries in 2028,” the minister said, pointing out that a deal missed by December would “undermine Europe’s credibility.”
To reach a deal, all 27 member states must approve the text, while the European Parliament must also give its consent to the proposal.
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