European Union ministers gathered in Brussels as debates over the bloc’s next seven-year budget intensified, with Ireland at the helm of negotiations. The European Commission has proposed a €1.9 trillion budget for the 2028–2034 period, but several member states, including Germany and the Netherlands, are advocating for significant cuts, while others aim to protect vital funding for agriculture and regional development.
The meeting also covers discussions on new revenue sources for the EU, crucial for repaying post-Covid recovery loans starting in 2028, which will require annual payments of approximately €24–€25 billion. Proposed new revenue streams include reallocating carbon-related levies, contributions from large corporations, and taxes on electronic waste. These measures could potentially generate €44 billion annually, according to estimates from the European Commission.
Additional revenue measures under consideration include levies on cryptocurrencies, large technology firms, and gambling, though such measures would need unanimous agreement from all EU member states. Ireland is preparing a draft negotiating framework to be reviewed at an EU leaders’ summit in October, a pivotal point as the budget talks transition to the European Council level.
In an unrelated development, the EU and the Philippines have reported substantial progress toward a free trade agreement. Initially launched in 2016 and revived in 2024, the negotiations have reached a stage where both parties are optimistic about finalizing the deal in the upcoming months. The agreement aims to eliminate tariffs on over 97% of bilateral trade, enhancing the economic relationship that saw goods trade valued at €17.6 billion last year and services trade reaching €10.3 billion in 2024.