The European Commission is attempting to introduce its first bloc-wide taxes on tobacco, e-cigarettes and large companies to repay a mountain of coronavirus debt.

Electronic waste and carbon emissions could also be targeted in the drive to raise much-needed cash and pay off a €650 billion (£560 billion) pandemic loan.

The European Union’s executive arm will present the proposal to member states on Wednesday as part of the unveiling of plans for the bloc’s next budget between 2028 and 2034.

Brussels raised €650 billion in joint debt to provide much-needed economic boosts to its pandemic-stricken economy.

But when the deal was signed off by member states in 2021, there was no agreement over how the money should be repaid

The EU is currently looking to set aside between €25 billion and €30 billion annually – equivalent to a fifth of its budget – to pay off the loan.