EU budget needs taxes governments aren’t already raising, Costa says
The European Council president spoke to POLITICO after visiting 25 capitals, and urged EU governments to soften red lines to secure a budget deal.
EU President António Costa suggests governments would back new budget taxes if they raise funds not already collected by national governments. During his tour of 25 capitals, Costa discussed how to gain support for new EU taxes, known as "own resources," to generate additional revenue. The agreement on these taxes by the end of the year is crucial to avoid cuts in spending or increased national contributions.
Some proposed taxes, like a tobacco tax, are already collected domestically, making EU taxes less valuable. However, newer products like vapes are untaxed in many countries, making them a more viable option. The Irish presidency is preparing a new negotiating package based on current government positions on spending cuts and new taxes.
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