EU puts new levies on the table for budget
New European revenues should create room for joint spending, while member states are divided over the size of the multiannual budget.
Follow-up to: Merz seeks further cuts to new EU budget Thursday, 15 October 2026, 04:57
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European budget negotiations are no longer only about cuts, but also about new sources of revenue. The European Commission wants to keep several levies as options, while countries such as Germany and Sweden are pressing for a smaller budget.
The discussion concerns the multiannual budget for 2028 to 2034. Ireland, which holds the rotating presidency of the European Union, has put forward a proposal of €1.62 trillion. According to the AP news agency, that is about 30 per cent more than the current seven-year package, but 8 per cent less than the European Commission’s proposal.
The Commission says the proposed size is necessary to pay for European priorities. These include support for Ukraine, competitiveness, energy security and the repayment of joint loans from the pandemic recovery fund. According to the Commission, five proposals for new own resources remain on the table, because contributions from member states alone do not, in its view, provide sufficient certainty.
One of the options under discussion is making greater use of revenues from the European emissions trading system. A new levy on tobacco is also being mentioned. The European Union may not independently impose general taxes as a national government does. It can, however, receive revenue from customs duties, a share of VAT and specific European arrangements.
On the other side are countries that believe spending should be reduced. Sweden calls the Irish proposal unaffordable, according to AP, and says that it would cause the national contribution to rise sharply. German Chancellor Friedrich Merz warned that the budget must remain affordable for the countries that finance the largest share.
The distribution of the money makes the conflict especially sharp. Agricultural subsidies and funds for poorer regions together account for about two-thirds of the budget. Less money for those items could clash with the interests of farmers and regions, while a larger budget is politically difficult to sell in countries where public finances are already under pressure.
An agreement is not necessarily required before the end of this year. According to AP, the member states still have about a year, but those decisions must then be quickly turned into legislation to allow payments from January 2028. The negotiations are therefore not only a battle over amounts, but also over which European goals should be financed jointly.
One story, several perspectives
What is established
- The EU is negotiating the multiannual budget for 2028-2034.
- Ireland has presented a budget proposal of €1.62 trillion on behalf of the presidency.
- The European Commission wants to retain five proposals for new own resources.
- Member states disagree over the size of the budget and its allocation across agriculture, cohesion and new priorities.
Left
Arguments New European revenues could prevent agriculture, cohesion, climate and social programmes from being played off against one another. According to this approach, shared European goals also require shared funding.
Values Solidarity, public investment and reducing regional disparities.
Consequences Without additional revenue, cuts could threaten poorer regions, farmers and climate policy in particular; new levies must nevertheless be distributed fairly between companies and households.
Centre
Arguments The institutional approach seeks a budget capable of paying for the agreed priorities, but links new revenues to transparent conditions, reforms and oversight by the Council and European Parliament.
Values Budgetary discipline, predictability and administrative feasibility.
Consequences A compromise could consist of limited new revenues, targeted savings and greater flexibility during crises, but it will not fully satisfy any member state.
Right
Arguments According to this approach, the EU should first restructure existing spending and reduce waste before introducing new levies. National parliaments must retain control over money ultimately raised from citizens and companies.
Values Low taxes, national control and financial responsibility.
Consequences A smaller budget could limit national contributions, but could also lead to less agricultural support, regional funding or European investment in defence and competitiveness.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The amounts, proposals and positions can be found in the cited AP and Commission sources. The text clearly distinguishes between existing revenues, negotiating options and final decisions.
- confirmed Ireland proposed an EU budget of €1.62 trillion for 2028-2034. — Mentioned by AP in its description of the Irish proposal. source
- confirmed The proposal is 8 per cent below the European Commission’s proposal. — AP explicitly cites this percentage. source
- confirmed The Commission is keeping five proposals for new own resources on the table. — The Commission says this in its briefing of 12 October. source
- confirmed Agricultural and cohesion policy together account for about two-thirds of the EU budget. — AP gives this proportion. source
- confirmed An agreement is not necessarily required before the end of 2026. — AP writes that the member states still have about a year, although legislation is still needed in time. source
Editor's note
The new revenue proposals and the size of the budget have been confirmed by AP and the European Commission. There is still no final decision on a levy or the budget; the amounts are negotiating proposals.Sources
- Tensions flare over the EU’s next long-term budget ahead of unpredictable elections in 2027 — Associated Press
- Revised negotiating box for the EU’s next MFF — European Commission
The story so far
- Tuesday, 13 October 2026, 20:30 EU countries clash over new long-term budget
- Thursday, 15 October 2026, 04:57 Merz seeks further cuts to new EU budget
- Thursday, 15 October 2026, 07:28 EU puts new levies on the table for budget (this article)
More on this in Dutch media
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