The EU needs to step up the ambition to boost its budget

Today, the European Parliament voted on the report "Own resources: a fresh start for the EU Finances, a new start for Europe". The ONE Campaign, Oxfam, ActionAid and Global Citizen are campaigning for any new own resources to be used to increase the EU’s external action budget to deliver on the EU’s promises on global development and climate action.

Emily Wigens, EU Director for The ONE Campaign, said:

“Today’s vote sends a strong signal of broad political support for an EU-wide Financial Transaction Tax. This is a great move on an issue which has been debated for more than 12 years. The EU urgently needs new resources capable of responding to today’s global challenges. An EU FTT could raise tens of billions of Euros annually and provide a game-changing amount of new finance for the fight against extreme poverty and climate change in low-income countries, if well allocated”.

Chiara Putaturo, Acting Deputy Head at Oxfam EU, said:

“The only fair way to boost the EU’s budget is by taxing the wealthiest individuals and the most profitable companies. But today, EU policymakers failed again to bring us closer to a system where the richest pay their fair share. It’s good that the European Parliament decided to discourage companies from rebuying their own shares to inflate their value, but this does very little for ordinary people. The European Commission must table proposals to tax wealth and all windfall profits if they really want to stay true to their word of building an economy that works for all people and not only the wealthiest.”

Javier Garcia de la Oliva, Head of Country Engagement and Transformation Europe and Americas at ActionAid International, said:

“In a fragmented world with multiple crises unfolding, the EU can simply not pretend to be a geopolitical player without an ambitious budget. With an external budget that is clearly failing to deliver on its global commitments, it is disappointing to see that the Parliament did not agree to dedicate part of the new and additional own resources to the Global Europe Instrument. We need the EU to rise to its historical responsibility and meet its commitments to fight climate change, preserve biodiversity and support the delivery of the sustainable development goals.” 

Valentina Barbagallo, Global Citizen EU & Climate Lead, said:

“We’re calling on the European Commission to rise to the occasion by proposing an ambitious package of new revenues that ensures everyone pays their share, including highly polluting companies who made huge profits on the back of the recent crises. With the EU’s external budget only accounting for 5.5% of the EU’s resources, and with the recent polycrises having depleted 80% of its available budgetary flexibility, it is paramount that any new revenues contribute to climate change and development support in the poorest countries.

At the international summit on a new global financing pact co-hosted by France and India in June, the Commission must champion these proposals and support a commitment to raise at least $50 billion a year for development and climate through internationally coordinated levies.”