As expected, the European Parliament in an extraordinary plenary session on 23 July 2020 rejected the European Council deal on the multiannual financial framework (MFF) and recovery fund package amounting to around EUR 1.8 tr. The core issue for the MEPs seems to be the reform of the EU’s own resources system, which includes various taxes – among others on non-recyclable plastic packaging (see Plasteurope.com of 22.07.2020). The EU parliament thought that the EU’s own resources should at least finance “Next Generation EU” spending. It is unclear whether this might entail an increase in the plastics tax.

Before the council had agreed on a budget and recovery deal, the parliament had already demanded new sources of EU revenue. In addition to taxes for digital services, carbon dioxide emissions and plastics – all part of the EU council deal – the MEP’s list included a consolidated corporate tax base, a financial transaction tax as well as revenues from emissions trading.

Negotiations between the parliament and council should come to a compromise by the end of October at the latest to ensure that EU programmes in 2021 can start up seamlessly. The tax on non-recyclable plastic packaging is set to take effect on 1 January 2021.

European Plastics Converters (EuPC, Brussels / Belgium; www.plasticsconverters.eu) has warned that the planned EUR 800/t tax will not raise the recycling rate of plastics in Europe and sees it as detrimental to the EU single market and recovery. EuPC managing director Alexandre Dangis said, “Instead, it will further increase the cost of plastic recycling and encourage the shift to other packaging materials with a bigger environmental impact. To truly increase recycling rates across Europe and protect the environment, taxation of the landfilling of plastic packaging waste would be more efficient.”