Unlocking the Own Resources Debate - State of Play
Testimony to the European Parliament's Committee on Budgets
On 4 June 2025, Zsolt Darvas delivered a presentation at a workshop on EU budget own resources, “Unlocking the Own Resources Debate,” organised by the Committee on Budgets of the European Parliament in Brussels. He outlined key principles guiding the ongoing own resources debate, offered his perspective on the lack of progress with the Commission’s 2021 and 2023 proposals, and introduced a new idea: a defence spending shortfall levy. Based on the principle that peace and security are core European public goods, and that some member states underinvest in defence while effectively free-riding on others, the levy would require countries spending below a defined share of GDP on defence to contribute to the EU budget. The defence spending shortfall levy proposal will be detailed in Bruegel’s forthcoming MFF Blueprint — co-authored by several Bruegel colleagues — which will be launched on 23 June 2025.
Find Zsolt's presentation slides here.