Raising taxes
But EU institutions and countries such as France are calling for a more ambitious package, arguing the bloc needs to invest in strategic sectors and compete with its Asian and American rivals.
For them, a bigger budget does not necessarily mean asking EU countries with strained public finances to pay more. Instead, they argue, the bloc should raise taxes that flow directly into the European budget, known in EU jargon as “own resources.”
In July, the Commission proposed levies on carbon-intensive imported goods through the Carbon Border Adjustment Mechanism (CBAM), emissions through the ETS, non-recycled electronic waste, tobacco consumption and corporate profits. Together, they would raise €66 billion per year, the EU says.
But those proposals, apart from CBAM, have previously received a cold reception from most EU countries.
This time, even if no clear consensus has emerged, the discussion made progress. “The mood was constructive, there was openness to look into it,” said the EU official quoted above.
And European Commission President Ursula von der Leyen wasn’t discouraged. “Own resources are indispensable,” she said at the end of the summit.
“Without them, the choice is stark,” she said. “It’s either higher national contributions or it’s lower spending capacity. That’s the only options that are there. In other words, lower spending capacities would mean less Europe ― exactly when more Europe is needed.”
Nette Nöstlinger contributed to this report from Berlin, Gabriel Gavin and Jacopo Barigazzi contributed from Nicosia.