New sources of revenue sought for EU budget

Credit Markets Weekly , 16. Juli
According to media reports, the European Commission intends to generate new revenue as part of the upcoming seven-year EU budget for 2028-2034, including a levy on all companies based in Europe with annual net revenues of EUR 50mn or more. The additional revenue should be used amongst others to repay the increased debt incurred during the pandemic. The draft is to be presented today and will form the basis for two years of negotiations with the member states and the European Parliament.

President Trump's latest tariff announcement provides for a flat tariff of 30% on EU exports to the US from August 1, instead of the 10% previously announced. Counter-tariffs would come into force on August 1 if the negotiations fail. The market has remained calm so far.