Key facts
- France is advocating for new EU-wide taxes to raise over €60 billion for the bloc's next seven-year budget.
- Paris aims to fund priorities such as defense and competitiveness and reduce national contributions.
- The proposal faces significant opposition from most other EU member states.
- The European Commission had previously proposed five new levies to generate up to €66 billion.
- Consensus has been reached on levies for foreign polluters (CBAM) and electronic waste, but other proposals are contested.
France is pushing for new EU-wide taxes to generate over €60 billion towards the bloc's next seven-year budget, according to three EU diplomats familiar with closed-door discussions. Paris views these new levies, known as 'own resources,' as crucial for funding EU priorities like defense and competitiveness, while also aiming to decrease national contributions to Brussels.
Securing France's support is considered vital for reaching an agreement on the budget proposal by year-end, especially with several national elections looming in 2027. There are concerns that a detrimental budget deal for France could empower the far-right National Rally, which is currently leading in polls and has pledged to halve Paris's EU budget contributions.
During a recent discussion, France's ambassador to the EU, Philippe Léglise-Costa, proposed the €60 billion target, a figure deemed high by most other countries. While many governments support introducing new own resources, specific proposals are met with reservations. The European Commission's July proposal included five new levies expected to generate up to €66 billion, but it has faced resistance.
The Irish Council presidency is working to narrow down the acceptable 'own resources' for an upcoming leaders' summit. Progress has been made on levies targeting foreign polluters (CBAM) and electronic waste, projected to generate significant annual revenue. However, proposals for taxes on tobacco products, corporate turnover, and Emissions Trading Scheme revenues have encountered opposition from several nations.