{"id":73703,"date":"2026-10-27T14:38:13","date_gmt":"2026-10-27T18:38:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/eu-weighs-global-tax-revenue-to-resolve-2028-2034-budget-deadlock\/73703\/"},"modified":"2026-10-27T14:38:13","modified_gmt":"2026-10-27T18:38:13","slug":"eu-weighs-global-tax-revenue-to-resolve-2028-2034-budget-deadlock","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/eu-weighs-global-tax-revenue-to-resolve-2028-2034-budget-deadlock\/73703\/","title":{"rendered":"EU Weighs Global Tax Revenue to Resolve 2028-2034 Budget Deadlock"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The European Commission is exploring the use of revenue from the 2021 OECD global tax deal<\/strong> to fund the bloc&#39;s next seven-year budget (2028-2034), potentially raising <strong>\u20ac65 billion annually<\/strong> from new &quot;own resources.&quot;<\/li>\n<li><strong>European Council President Ant\u00f3nio Costa<\/strong> is pushing for these new revenue streams to avoid increasing direct national contributions from member states, which currently face a <strong>\u20ac1.82 trillion<\/strong> total budget proposal.<\/li>\n<li><strong>The proposal targets multinational enterprises (MNEs)<\/strong> with annual turnovers exceeding <strong>\u20ac750 million<\/strong>, leveraging the 15% global minimum tax (Pillar Two) to create a sustainable EU-wide funding mechanism.<\/li>\n<li><strong>France has signaled support<\/strong> for the initiative, while <strong>Germany remains a key opponent<\/strong>, specifically regarding the &quot;CORE&quot; corporate levy that would tax companies with revenues over <strong>\u20ac100 million<\/strong>.<\/li>\n<\/ul>\n<p>The European Commission is actively considering a plan to redirect revenue from the <strong>OECD global tax agreement<\/strong> into the European Union\u2019s next long-term budget. This move comes as Brussels faces a significant deadlock in negotiations for the <strong>2028-2034 Multiannual Financial Framework (MFF)<\/strong>. By tapping into corporate tax profits rather than revenues, officials hope to gain broader political support from member states wary of traditional tax hikes.<\/p>\n<p>European Council President <strong>Ant\u00f3nio Costa<\/strong> has urged leaders to finalize new &quot;own resources&quot; to preserve the EU&#39;s ambitious spending goals in defense and green energy without placing additional pressure on national treasuries. The current proposal for the seven-year cycle sits at approximately <strong>\u20ac1.82 trillion<\/strong>. Without new revenue streams, net contributors like <strong>Germany<\/strong> and the <strong>Netherlands<\/strong> may be forced to increase their annual payments, a prospect that has met fierce resistance in domestic parliaments.<\/p>\n<p>The strategy focuses on the <strong>Pillar Two<\/strong> mechanism of the 2021 OECD deal, which mandates a <strong>15% minimum corporate tax<\/strong> on large multinationals. While these funds currently flow into national budgets, the Commission suggests a portion could be centralized at the EU level. This approach is seen as a more palatable alternative to the <strong>Corporate Resource for Europe (CORE)<\/strong> levy, which faced criticism for taxing top-line revenue rather than net profit.<\/p>\n<p>French President <strong>Emmanuel Macron<\/strong> reportedly backed the initiative during the October leaders&#39; summit, viewing it as a way to ensure that &quot;Big Tech&quot; and other highly profitable sectors contribute directly to European sovereignty. However, the plan faces technical hurdles, including a <strong>January 2026 &quot;side-by-side&quot; agreement<\/strong> that allows certain U.S. tax systems to coexist with Pillar Two, potentially complicating the calculation of available EU revenue.<\/p>\n<p>If successful, the inclusion of global tax revenue could unlock stalled negotiations and provide the &quot;firepower&quot; needed for the <strong>European Competitiveness Fund<\/strong>. The Commission estimates that a combination of new corporate, carbon, and digital taxes could generate up to <strong>\u20ac65 billion per year<\/strong>. As the 2026 deadline for a budget deal approaches, the shift toward global tax revenue represents a critical attempt to bridge the gap between &quot;frugal&quot; northern states and those seeking expanded EU investment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The European Commission is exploring the use of revenue from the 2021 OECD global tax deal to fund 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