Micheál Martin, the Prime Minister of Ireland, announced on Thursday that Brussels needs new taxes to avoid significant cuts in the upcoming seven-year budget of the European Union. These remarks came after his meeting with António Costa, the President of the European Council, at his official residence in Dublin. The aim of this meeting was to discuss negotiations and pave the way for signing an agreement on the multiannual financial framework, the seven-year budget of the Union, by the end of the year.
Need for new resources
Martin told reporters: "If we want to maintain support for the Common Agricultural Policy (CAP) and solidarity while also enhancing Europe's competitiveness in the future, we need to create new and significant resources." These statements highlight the importance of new taxes in financing key EU programs.
The Prime Minister of Ireland added that reaching an agreement on new taxes, also known as own resources, will be "very complex" and emphasized the tensions in the negotiations. The European Commission has proposed five new taxes for 2025, which are expected to generate €60 billion annually. However, this proposal has faced resistance from national governments, as they are reluctant to support new taxes that primarily impact domestic industries.
Negotiation process and future
Ireland, which holds the rotating presidency of the EU Council and is leading the budget negotiations, will soon publish a new negotiation document or "negotiation box" with revised figures. Martin noted: "When we meet with different member countries, they have their own goals, requests, and demands, and we cannot respond to these requests if there are not sufficient new resources." These remarks set the stage for the next meeting of European leaders on October 15, where Costa aims to finalize several own resources that have strong support among EU countries.
Given the economic challenges and the need for sustainable budgeting, the upcoming negotiations are likely to have a significant impact on the EU's economic and social policies. Martin and Costa hope to reach a comprehensive agreement that includes sustainable and efficient financial resources.
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