Framing question: What would be the most efficient steps to make progress on the EU road map for new own resources?
Cyprus opposes the potential extension of the Emissions Trading Scheme to aviation and maritime sectors, as well as the introduction of a Financial Transaction Tax and a Common Consolidated Corporate Tax Base. Cyprus is a remote island country with a small economy and would be adversely affected by such developments.
The proposals for new own resources should primarily undergo thorough impact analysis in advance, in order to ensure that competitiveness in each Member State is safeguarded, bearing also in mind the new economic realities. In this regard, the possible extension of the EU Emissions Trading System to maritime and aviation should respect the island character of Cyprus and adhere to Article 174 of the Treaty on the Functioning of the EU.
At the same time, tax-based own resources, such as a Financial Transactions Tax or a Common Corporate Tax Base, should be designed to promote sustainable growth and development in all member states. This requires a thorough assessment of their effects in the economic, social and environmental dimensions, while ensuring a fair regional distribution of the tax burden.