EU Council President Proposes New EU-Wide Taxes to Ease German Budget Burden
Quick Look
European Council President António Costa proposed new EU-wide taxes to reduce national contributions and protect German taxpayers from increased EU budget payments, speaking alongside Chancellor Friedrich Merz in Berlin amid rising pressure from the AfD's regional election victory in Saxony-Anhalt.
AI-generated summary
Why It Matters
EU budget negotiations for 2028-2034 are underway with an informal deadline approaching in less than four months. Germany contributes approximately one-quarter of the EU budget, making it a key net contributor. The AfD's recent landslide victory in Saxony-Anhalt has strengthened Euroskeptic influence within Germany, potentially affecting Merz's negotiating position.
European Council president António Costa said that new, EU-wide taxes could shield German taxpayers from sending more money to Brussels.
With less than four months to go until an informal deadline to reach a deal on the EU’s 2028-2034 budget, Costa signaled that new levies would reduce national contributions to the EU’s coffers. This is a key aim for Germany, which finances a quarter of the cash pot.
“We cannot ask more from the member states. We need to create new own resources in order to protect the national budgets,” Costa said in a joint press conference with German Chancellor Friedrich Merz in Berlin.
“All national budgets need to be respected,” he added.
Costa’s visit came only three days after the far-right Alternative for Germany secured a historic landslide victory in the regional elections in Saxony-Anhalt. The Euroskeptics’ success risks hardening Merz’s stance in the budget negotiations, according to several EU diplomats.
Speaking alongside Costa, the German Chancellor reiterated calls to cut “several hundreds of billions” from the Commission’s near-€2 trillion proposal.
He described the budget increase as “simply prohibitive because at the end it is the European taxpayer who has to foot the bill.”
Costa countered that EU-wide taxes, known as own resources, are needed to finance common European policy areas such as defense and competitiveness that cannot be addressed by individual governments.
The Portuguese leader has previously signaled that he intends to narrow down several potential taxes that are acceptable to EU governments during a leaders’ summit on Oct. 15.
New own resources were expected to be €66 billion per year according to the Commission’s proposal from last July.
But after over one year of negotiations, EU governments have only agreed to proposed levies on foreign polluters, known as the Carbon Border Adjustment Mechanism, and on uncollected electronic waste, which are expected to jointly raise around €20 billion per year.
What to Watch
AI outlook — possibilities, not facts
EU leaders will reach a preliminary agreement on additional own resources during the October 15 summit.
Possible · Within weeks
Open Questions
- Which specific EU-wide taxes are under consideration beyond the Carbon Border Adjustment Mechanism and electronic waste levy?
- How will the AfD's electoral success concretely influence Merz's stance in the upcoming budget negotiations?
- What is the timeline for finalizing the EU's 2028-2034 budget agreement?
