Subject: Joint Letter to the Ministers of Economy and Finance of the European Union Regarding the Own Resources of the EU
From: "Chiara Martinelli" <[email-masked]>
To: "info - MKM" <[email-masked]>
Date: Thu, 8 Jan 2026 14:00:12 +0200

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To: Finance Ministers of EU Member States

Economy Ministers of EU Member States

Brussels, Thursday 8 January 2026

Dear Ministers of Economy and Finance,

As you prepare to discuss the Council Decision on new EU own resources in 
the ECOFIN Council, we urge you to reach a swift agreement. The EU’s budget 
must evolve and increase in order to meet the scale of today’s unprecedented 
threats - and future opportunities. Whilst imperfect, the Commission’s 
proposal sets out a pathway for a budget that is the bare minimum for 
responding to today’s challenges, at home and abroad. Failing to agree on 
new own-resources that match that level of ambition would make it impossible 
to mount a credible EU response.

We recognise the concerns about the impact of the proposals on the table on 
national revenue, and the pressure on Member states that are net 
contributors at a time of tight budgets. However, we urge you to go beyond 
narrow arithmetic. Our collective prosperity depends on a Union of 27.

A strong single market, one that protects consumers, the environment, and 
fair competition, is vital at times when global trade is being used to 
blackmail Europe. As is a strong ‘Global Europe’ that invests in tackling 
global challenges that risk undermining ours and our partners’ stability and 
prosperity. Our dependency on raw materials, energy, defence and digital 
technology is being weaponised to obtain the dismantling of carefully 
negotiated social, taxation and environmental rules. Only a united EU can 
defend our social and environmental standards and strengthen Member States’ 
respective leverage.

In these times of geopolitical tensions, governments must show renewed 
commitment to solidarity and cohesion between EU countries and regions, 
without which the Union risks fragmentation and decline.

We therefore support the three genuinely new EU own resources proposed, i.e. 
the tax on non-collected e-waste, the tax on tobacco and tobacco-related 
products and the Corporate Resource for Europe (CORE). We are aware that the 
latter is generating resistance, and we would have preferred more 
progressive proposals in the first place, which we already shared with you 
in June. However, in a constructive approach and aware of the urgency of the 
situation, we recognise the following advantages of the CORE:  a) its design 
is extremely simple and there are no additional reporting obligations on 
companies; b) it minimizes the risk of tax avoidance because based on 
turnover and not profits; c) it does not prevent governments from adopting 
profit taxes at a later stage, for example on fossil fuel industries; d) the 
fee is so low that it cannot harm the competitiveness of companies; e) it 
only applies to large companies, who immensely profit from the single 
market – often to the detriment of small local businesses.

The other proposals on the table include a transfer of 30% of the revenues 
generated from existing ETS 1 from national to the EU budget. This funding 
stream is currently allocated to the energy transition, including support to 
lower- and middle-income households. A transfer to the EU budget would mean 
a reduction of the funding available to Member States for the energy 
transition. We urge you to replace this proposal with another revenue source 
that is progressive and reflects the polluter pays principle, as slowing 
down the energy transition would perpetuate our dependence on imported and 
expensive fossil fuels, harming Europe’s economy and dependent households, 
and aggravating dangerous climate change.

The plastics levy under the previous MFF allowed for the generation of 
needed resources, but did not contribute to a reduction of the production 
and consumption of plastic overall. The own-resource proposals on e-waste 
and plastic must therefore be complemented by ambitious circularity measures 
(recycle, but before that reduce and reuse) under the Circular Economy Act 
expected in 2026.

A delayed agreement on the Own Resources Decision would result in a further 
shrinking of the EU budget, and a grimmer perspective for our common future 
in Europe and the role of the EU globally. At the same time, we continue to 
urge you to consider additional sources of funding, in line with the 
principles of tax progressivity and environmental sustainability.

We thank you for your attention and, aware that building consensus is more 
difficult than refusing compromises, count on your determination.

Yours sincerely,

*	Kasia Lemanska, Head of EU office, Aidsfonds
*	Chiara Martinelli, Director, Climate Action Network (CAN) Europe
*	Katy Wiese, Policy Manager for Economic Transition and Gender Equality, 
European Environmental Bureau
*	Thomas Desdouits, Sustainable Fiscal Policy Officer, European Youth Forum
*	Caroline Whyte, Ecological Economist, Feasta (Foundation for the Economics 
of Sustainability)
*	Valentina Barbagallo, EU Representative, Global Citizen
*	Kuba Gogolewski, Programme Director, Mission Possible
*	Sebastian Mang, EU Policy Programme Lead, New Economics Foundation
*	Emily Wigens, EU Director, The ONE Campaign
*	Cristina Fernandez Duran, Head of Oxfam EU Office
*	Eloise Todd, Executive Director & Founder, Rani (Resilience Action Network 
International)
*	Vanessa López, Executive Director, Salud por Derecho
*	Aline Maigret, Head of Policy, Zero Waste Europe

Climate Action Network (CAN) Europe, Mundo Matongé, Rue d'Edimbourg 26, 
Brussels, Belgium

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