New EU Taxes Could Slash Member States' Payouts to Brussels

EU Council President Costa discussed budget reforms with German Chancellor Friedrich Merz that would reduce national contributions to the EU through new tax mechanisms. The talks follow political turbulence in Germany's Saxony-Anhalt region, where electoral setbacks have heightened fiscal concerns. The discussion signals tension over EU financing reform as member states weigh revenue-raising options against reducing their direct contributions.

Byte's take

Brussels wants to tax its way out of budget math it refuses to fix. Costa and Merz are exploring new EU-wide levies that would cut member states' direct contributions, reshuffling who pays for the bloc's operations across all 27 countries.