Brussels is grappling with deep divisions among member states over ways of raising fresh revenue to repay the unprecedented debts the EU is taking on via its recovery fund, in a new challenge to the EU’s coronavirus-fighting plan.
The European Commission is working on a three-pronged approach to raise €13bn-€15bn of revenue a year to service the borrowing that it will start to issue this year under the €750bn recovery plan.
This will be based on an expansion of the EU’s emissions trading scheme, which would account for about half the revenue raised for the commission, along with a new carbon border adjustment mechanism and a levy on digital companies, according to a draft summary seen by the Financial Times.
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