The European Parliament's Budgets Committee held a workshop on 23 June 2026 to examine a digital levy as a potential new own resource for the EU's post-2027 budget and to help repay Next Generation EU borrowing. Chair Johan Van Overtveldt (ECR, Belgium) framed the discussion as timely, noting Parliament's longstanding support for a basket approach to own resources that would diversify EU revenue beyond traditional contributions.
Guest speakers presented technical and political angles. Apostolis Thomadakis of CEPS outlined three dimensions: the re-emergence of digital taxation in EU debates, lessons from member states that have introduced unilateral digital services taxes, and the feasibility of channelling such a tax to the EU budget. Kristina Enace of the Tax Foundation, Faith Amaro of the University of London, and Patricia Brown of the UN also contributed, focusing on design options and alignment with international tax frameworks.
The workshop recorded no substantive disputes; participants broadly agreed on the topic's relevance and the need to explore a digital levy as part of a broader own-resources package. The discussion did not specify next steps or a timeline for a formal proposal.
A digital levy as an EU own resource would affect several stakeholder groups. Tech companies operating in the EU could face new compliance costs and tax liabilities, potentially reducing their profitability. EU member states would see a shift in revenue streams, with some losing national digital tax receipts if the EU levy replaces unilateral measures. EU taxpayers could benefit indirectly if the levy reduces the need for direct national contributions to the EU budget. The European Commission and Parliament would gain a more autonomous revenue source, reducing reliance on member state transfers.
The workshop comes as the EU seeks to finalise its post-2027 multiannual financial framework and secure repayment of the €800 billion Next Generation EU borrowing. A digital levy has been debated since 2018 but has not advanced to a formal Commission proposal, partly due to international tax reform efforts at the OECD.