European Union legislators have requested the implementation of a pan-European tax on the largest tech corporations and online gambling platforms in order to contribute to the financial backing of the EU's forthcoming seven-year budget encompassing all 27 member states.
The European Union is currently encountering a significant challenge this year regarding the budget for 2028-2034, set by the executive at a staggering two trillion euros ($2.3 trillion).
Intensive discussions are anticipated to take place between the European Parliament and member states, particularly concerning the allocation of additional funding which governments are hesitant to provide.
EU lawmakers are in a rush to reach a consensus on the budget before the end of the year. They have suggested that a portion of the funding could be derived from a "digital levy".
The budget committee of parliament is presently engaged in discussions regarding their stance, with a vote on the text anticipated to take place on April 15, followed by a vote by all members of the EU legislature at the end of this month.
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"We believe that technological giants are making a lot of good business in Europe and also significant profits," says Siegfried Muresan, the EU lawmaker who will lead negotiations on behalf of parliament.
"It is therefore justifiable that they contribute in form of taxation to the budget of the European single market which enables them this business here," says Muresan, who belongs to the biggest conservative grouping, the EPP.
group of center-left socialists and democrats has proposed implementing a tax on online gambling in order to fund an expansion in expenditures, as stated by socialist legislator Carla Tavares, who is leading the discussions regarding the budget with Muresan.
The European Commission is seeking to augment the budget to two trillion euros, an increase from the prior budget of 1.2 trillion euros allocated for the 2021-2027 period.
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Members of parliament are advocating for increased funding to essential industries such as agriculture. They encounter a significant obstacle as approval from all EU member states is required for the implementation of these measures.
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The upcoming budget will allocate approximately 168 billion euros for the purpose of repaying the EU loan acquired amid the pandemic caused by the coronavirus.