The negotiations over the new European multiannual budget are causing increasing division within the European Union. Especially the future of agricultural subsidies, regional support, and the introduction of new taxes are sources of tension.
The intention is to reach a decision at the EU summit on June 18 and 19 at ministerial level, but that will (given past experiences) likely happen under time pressure in the autumn. Therefore, Ireland, which holds the rotating EU presidency for the rest of the year, has already announced it will not take its own position.
More Defense
Both the Finance ministers of the EU countries and the Budget Committee of the European Parliament are trying this week to establish their positions for the multiannual budget 2028 - 2034. The EU Commissioners want to allocate significantly more funds for European Defense and for strengthening the Economy and businesses.
Promotion
An important topic of discussion is the question of what new or higher taxes could be levied, such as on imports from non-EU countries of environmentally polluting (raw) materials. In the European Parliament, there are also voices advocating for introducing a tax on the growing sector of gambling and betting.
Stronger economy
At the same time, pressure is growing to release additional funds for other European priorities. Defense, economic strengthening, and business support are especially mentioned as areas where more money should be directed in the coming years.
This leads to a difficult discussion about how the European Union should finance these higher expenses. Some countries want to prevent a significant increase in their contribution to the EU budget and therefore advocate restraint when it comes to new expenditures.
More revenue
As a result, focus is increasingly shifting towards new European sources of income. Within the European Parliament and other European institutions, talks are ongoing about new taxes and levies that should directly generate money for the EU.
One of the most notable proposals is a European levy on online gambling and betting. Several political groups see this as an opportunity to generate billions of euros extra for the European budget.
Internet and gambling
Supporters of such a measure say the money can be used for social goals, such as education, healthcare, youth policy, and tackling gambling addiction. At the same time, the proposal raises questions about the impact on companies in the gambling sector.
Large (American) technology companies are again under scrutiny. In Brussels, there is renewed discussion about a tax on tech companies ('digitax') as a possible extra source of income for the European Union. This will undoubtedly lead to new clashes with American President Trump.