EU must have more of its own taxes from 2028, says von der Leyen – POLITICO

STRASBOURG — The EU needs more of its own taxes to raise revenue, allowing it to make debt repayments while continuing to fund farmers and regional development without increased contributions from member countries, European Commission President Ursula von der Leyen said Wednesday.

The EU must agree on its 2028–2034 long-term budget by the end of 2027, though leaders hope to seal a deal by the end of 2026. There will be tense negotiations between EU countries such as Germany, which want to reduce the contributions from national coffers to the common budget, and the European Parliament, which on Wednesday proposed raising the budget beyond the €2 trillion mark.

An added complication in these budget talks is that the EU is due to begin repaying the €390 billion it borrowed through common debt for its Covid-19 recovery package. Paying that back will have to be squared with continuing to support farmers, invest in poorer regions and fund industry, innovation and defense.