Ursula von der Leyen wants to impose new taxes on EU nations to help make up a new huge budget. The European Commission President is planning levies on tobacco, electronic waste and the revenues of major corporations, as she looks to almost double the bloc’s budget for 2028-2034.
Ms von der Leyen said a new budget of €2 trillion (£1.7 trillion) — up from the previous €1.21 trillion (£1 trillion) budget set in 2020 — is for “a new era… that confronts Europe’s challenges, that strengthens our independence”. The Commission hopes the new levies will generate €58.5 billion (£50.6 billion) annually over the seven-year period covering the budget. Companies with a net turnover of more than €100 million (£86 million) will face the proposed new tax which is expected to raise €6.8 billion (£5.9 billion) each year, while the tobacco duty is expected to generate €11.2 billion (£9.7 billion) annually.
The proposed budget requires all 27 member nations to agree and sign off by the European Parliament.
It will include €100 billion of support for Ukraine as European allies continue to provide support to Kyiv as Russia’s full-scale invasion continues.
It also includes €865 billion (£747 billion) for agricultural, fisheries, cohesion and social policy, plus €410 billion (£354 billion) for areas including research and innovation, Euronews reports.
Ms von der Leyen said the budget is “more strategic, more flexible, more transparent”.
“We are investing more in our capacity to respond and more in our independence,” she said.
Despite the taxes, the majority of the budget is expected to be funded from direct contributions by nations.
The budget also includes €292 billion for areas such as civil protection, the single market, justice affairs and administration, per reports, while the bloc will also begin repaying debt from the pandemic estimated to cost between €25 billion (£21.6 billion) and €30 billion (£25.9 billion) a year.
Some of the country’s biggest financial contributors have expressed concern over the budget.
The Netherlands’ finance minister said it is too high, while Germany and Sweden have also vented reservations.