Instead, the EU would generate its own finances, primarily through a "carbon tax" and also EU-wide VAT.
Other possible sources of finance might include a financial transaction tax and "European projects bonds" which would be used to fund major, long-term schemes such as the Galileo satellite navigation system.
The proposals are contained in a key policy paper drafted by ALDE group leader Guy Verhofstadt and Alain Lamassoure, a former French government minister.
Verhofstadt said, "It is easy to dismiss this as a dead duck, but it is important to stress that this is not a case of parliament asking for more money for the budget.
"Our proposals will get citizens interested in the EU and how it is funded. YEAH RIGHT!
He said, "When our economies in Europe are integrated it makes sense to have an integrated budget."
DREAM ON SUNSHINE. YOU'LL NEVER GET BRITONS TO AGREE TO INTEGRATION!