France calls for new EU taxes to raise €60B

Paris is pushing for new EU-wide taxes to raise over €60 billion for the bloc’s forthcoming seven-year budget, three EU diplomats have disclosed, speaking on condition of anonymity. France has become the chief advocate of these "own resources" taxes, arguing they will bolster funding for EU priorities like defense and competitiveness while simultaneously cutting national contributions to Brussels.

Securing French support is imperative for reaching a consensus among governments on the budget proposal by the end of the year, before elections in 2027 might jeopardize the talks.

France's ambassador to the EU, Philippe Léglise-Costa, conveyed to colleagues during a closed-door session that these new EU-wide levies should produce more than €60 billion, a steep target for many nations. While other countries have not disclosed their own revenue targets, the majority backs the introduction of new own resources but harbor doubts about the proposed mechanisms.

The European Commission's initial July proposal outlined five new levies capable of generating up to €66 billion annually, yet this package has encountered resistance from national governments.

The Irish Council presidency, leading the discussions on the upcoming Multiannual Financial Framework (MFF), aims to streamline the list of acceptable own resources during a leaders' summit in Brussels on October 15. Dublin acknowledged on Monday that there is "consensus" among governments to institute new levies on foreign polluters, the Carbon Border Adjustment Mechanism (CBAM), and electronic waste, which could collectively bring in an average of €1.64 billion and €17.9 billion per year from 2028 to 2034.

However, a significant setback for France emerged during Tuesday's deliberations when other tax proposals, such as those targeting tobacco products, corporate turnover, and revenues from the Emissions Trading Scheme, faced opposition from several countries, according to a note viewed by POLITICO.