CSOs react to the EP vote on new own resources to finance the EU budget 

Brussels – Today, the European Parliament Committee on Budgets voted on the Committee’s own initiative report on new own resources to finance the EU’s budget and political priorities.

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 that 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”.

However, the committee didn’t back all of the proposals put forward by civil society organisations. Chiara Putaturo, Acting Deputy Head of Oxfam’s EU Office, said: “Today, EU parliamentarians ditched the opportunity to boost the EU’s budget by taxing the rich. Not only are European multinationals making profits to levels they never dreamt of, but Europe’s richest 1% pocketed nearly 45% of new wealth since 2020.  It is obvious where the money is, but EU parliamentarians chose to keep it in the pockets of the rich by voting against EU taxes on wealth and windfall profits”.

Javier Garcia de la Oliva, Head of Country Engagement and Transformation Europe and Americas at ActionAid International said: “It is vital for the EU not only to raise additional revenues through progressive taxation, it must send a strong political signal to the most vulnerable and dedicate in one way or another part of these revenues to global challenges. The EU cannot afford to close down and appear as a ‘fortress’ in a time where it aims for geopolitical credibility and leadership. It must instead rise to its historical responsibility and meet its commitments to fight climate change, preserve biodiversity and support the delivery of the sustainable development goals.” 

Outlining next steps, Valentina Barbagallo, Global Citizen EU & Climate Lead, said: “At the EP Plenary next month, MEPs have an opportunity to agree on a truly ambitious package of new revenues to equip the EU budget to meet the EU’s commitments – including those to the poorest and most vulnerable countries. This means ensuring everyone pays their share, such as highly polluting companies who made huge profits on the back of the recent crises, and that new revenues benefit the fight for climate justice and development.

These are measures we urge the European Commission to include in its upcoming proposal and to champion in June, at the international summit on a new global financing pact – which must deliver a commitment to raise at least $50 billion a year for development and climate through internationally coordinated levies”.

Notes to editors 

More information on the European Parliament Committee vote is available here.