Capitals remain divided over the Commission’s proposals for new EU-wide taxes to raise €66 billion annually
Europe’s leaders were warned on Friday that a failure to agree on new EU-wide taxes could force spending cuts of up to 40% in the bloc’s next long-term budget, according to a European Commission assessment presented to capitals.
The analysis was shared during the first discussion at the level of heads of state and government of spending figures put forward last week.
The Commission plans to raise €66 billion through new EU-wide levies to fund the expenditure, and failure to agree would have a drastic impact on the EU’s future spending between 2028 and 2034.
To close the financing gap, capitals would either have to increase their national contributions, which is unlikely, given the strong opposition of large contributors, or accept significant spending reductions.
