Europe Tax Reform | Government Revenue and Economic Growth

The EU’s cross-institutional disputes over the Multiannual Financial Framework are a little like a married couple arguing about money—it’s not really about the money. Instead, it’s about control and power, reflected in their competing visions of EU integration.

Currently, the European Commission has plans to generate more taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. revenue to fund the forthcoming MFF, the long-term budget running from 2028 to 2034. President Ursula von der Leyen is championing these tax hikes, saying it’s time to “match Europe’s priorities with Europe’s means.”

But the truth is, without serious reform, the EU isn’t ready for new taxation. The bloc should fix its existing fiscal levers instead.