Explainers

The EU is committed to achieving a low-carbon, resource-efficient, and sustainable economy. Together with its member states, the EU is the biggest provider of climate finance in the world.

How does the EU contribute to fighting climate change globally? The EU and its countries are the biggest providers of climate finance in the world.

The main sources of revenue for the 2021-2027 budget are member states’ contributions based on their gross national income, value added tax-based resources and custom duties.

The EU list of non-cooperative jurisdictions for tax purposes is part of the EU’s work to fight tax evasion and avoidance. It is composed of countries which have failed to fulfil their commitments to comply with tax good governance criteria within a specific timeframe, and countries which have refused to do so.

In the aftermath of the COVID-19 crisis, the EU has set out an unprecedented recovery plan, Next Generation EU, to kickstart the European economy and support the green and digital transitions, making Europe more resilient and fit for future challenges.

The EU's annual budget lays down all of the European Union's expenditure and revenue for one year. It provides for the funding of EU policies and programmes in line with the EU's political priorities and legal obligations.

This infographic shows the main areas of the 2025 EU budget.

The EU's long-term budget is reinforced with an additional €64.6 billion to cover financing for priorities such as support to Ukraine, strategic technologies and migration. The funding comes from a mix of existing and new funds.

To be considered cooperative for tax purposes, third-country jurisdictions are screened on a number of criteria, established by the Council in 2016. Those criteria relate to tax transparency, fair taxation and anti-BEPS measures.

This infographic shows the main areas of the 2024 EU budget.