EU Budget Talks Center Around Crypto Levies, E-Waste Fees

The European Union is facing a significant challenge in determining its budget for the next seven years. The proposed Multiannual Financial Framework for 2028-2034 has been met with resistance from net contributors, who want to limit their contributions, while beneficiaries are pushing for increased spending. To address this issue, EU leaders are exploring new revenue streams, known as 'own resources.'

These own resources could generate approximately €58.2 billion annually at 2025 prices. The biggest contributor is expected to be a fee on non-collected e-waste, estimated to yield around €15 billion per year. Other sources of revenue include tobacco excise duties, the EU Emissions Trading System, and corporate contributions.

The European Union is also considering levies on digital services, online gambling, extreme wealth, and transactions related to crypto assets. A 0.1% crypto transaction levy could raise an estimated €3-4 billion per year, while a capital gains tax on crypto assets could yield an additional €1-2.4 billion annually.

The European Parliament has been advocating for at least €60 billion annually in new resources and specifically pushing for a digital levy and uniform capital gains tax on crypto assets. However, the estimates come with a massive asterisk due to crypto market instability.