The retreat is a strategy concession in negotiations due to the trade war started by Trump’s tariffs.
The European Commission retreated on plans to impose a digital tax About technological giants, a measure that favors US interests and gives a diplomatic victory to companies like Apple and the goal.
The decision, seen in a document obtained by, comes a few days before the disclosure of the committee’s budget proposal for 2028-2034 and amid delicate negotiations with Washington Due to the trade war.
Although a digital tax has previously been considered as a key tool for raising funds and paying the EU debt, the idea has now been taken from the commission’s potential sources of revenue sources. Reversal is seen as a strategic concession It aims to improve the EU’s negotiating position with the US, especially since Donald Trump threatened with retaliation tariffs in response to similar digital taxes imposed by other countries.
Instead of taxing digital services, the commission now proposes three alternative taxes: One about discarded electronic waste, one on tobacco products, including electronic cigarettes and vaporizers, and a third over large EU companies with annual revenues of over 50 million euros. Collectively, these new taxes are expected to raise between 25 billion euros and 30 billion euros annually, helping to pay the joint EU debt contracted during the postpande recovery effort.
O tobacco taxwhich would represent a change in relation to the current system, in which Member States retain revenues, faces the opposition of countries such as Italy, Greece and Romania. Sweden also vehemently opposed, considering the redirection of national revenues for the “completely unacceptable” EU.
In addition to the new taxes, the commission is expected to reaffirm its plans for expansion of existing green taxesincluding the carbon adjustment mechanism at the borders and the Emissions Trade Regime (ETs).
However, in response to the resistance of the east European countries, the proposal limits the amount of revenues that will go to the EU compared to national governments. Notably, the most controversial ETS2, which extends carbon prices to buildings and road transport by 2027, will not be included in the EU’s central budget.
Any new tax proposals will require unanimous approval Of all 27 EU Member States, paving the way for complex negotiations in the next two years. The Commission’s official budget plan is expected to be presented on Wednesday.
