Brussels weighs a broad corporate levy to fund the EU’s next budget
The European Commission is considering a levy on very large companies, including US tech groups, to help raise money for the EU’s 2028–34 budget without singling out digital firms and provoking Washington. The proposed tax is one of five new EU revenue sources, but it would need unanimous support from all 27 countries as capitals debate the budget’s size.
Bottom line — The proposed corporate levy is part of a €60bn-a-year package, but every EU country must agree to it.
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The Financial Times reports that Brussels is weighing changes to its Corporate Resource for Europe proposal, which currently applies to companies with EU revenue above €100mn a year.
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Officials told the FT that raising the thresholds could exclude medium-sized firms while increasing the contribution from the largest companies.
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The FT reports that the five proposed new revenue sources would collectively raise about €60bn a year from 2028.
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EU diplomats told the FT that the Commission’s budget figures exclude the proposed new taxes: including them would put the next budget at 1.19% of EU gross national income, up from 1.02% in 2027.
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According to the FT, most EU countries oppose the current proposal, arguing that it could disadvantage medium-sized European firms against foreign competitors.
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The FT reports that Washington has threatened retaliation against countries with digital services levies; France, Italy, Spain and Austria already have national levies and face US trade investigations.