EU considers using global tax revenue for next budget, diplomats say

Commission explores redirecting proceeds from 15% minimum corporate tax on multinationals to the bloc's seven-year spending plan

By LineZotpaper AI staff

Published27 October 2026

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The European Commission is examining whether to channel revenue from a global minimum corporate tax on large multinationals into the EU's next seven-year budget, four EU diplomats with knowledge of the proceedings told POLITICO. The move could help resolve deadlocked negotiations over new EU-wide taxes that have stalled budget talks.

The idea would redirect part of the proceeds from the OECD's 2021 tax deal, which compels EU countries to levy a 15% minimum corporate tax on multinationals with annual turnover above €750 million, to the EU budget. Currently, the revenue is collected by national governments.

European Council President António Costa is pressuring leaders to reach a budget deal by the end of the year, before upcoming elections in Poland, France and Italy risk derailing negotiations. The latest budget proposal, worth €1.82 trillion, was tabled earlier this month.

EU governments remain divided over five proposed new taxes that the Commission estimates would generate €65 billion per year. One option, a corporate tax called CORE that charges a lump sum on companies' revenues exceeding €100 million, has proved particularly unpopular, notably in Germany.

French President Emmanuel Macron supported funneling part of the tax on multinationals to the EU budget during an October summit, according to two of the diplomats.

Pascal Saint-Amans, a former OECD official who helped design the global tax arrangement, defended the potential new revenue source. "The corporate income tax is about taxing companies based on their profitability. CORE is not about that, CORE is about taking a toll blindly," he said. He added that multinationals' "activities are taking place in Ireland, but are about managing the EU markets," arguing that it "could make sense" to allocate top-up taxes to the EU budget.

Redirecting the revenue could hit low-tax countries such as Ireland and the Netherlands, which collect large sums from the top-up tax. The Dutch government collected €449 million in 2026 from returns related to the global minimum tax, according to Bloomberg.

Costa's team and the Commission are looking into the option before bilateral discussions with EU countries starting next week, with a leaders' summit scheduled for November 26–27.

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Analysis

Why This Matters

The idea could reduce the share of national contributions that EU member states pay into the bloc's budget, easing pressure on domestic finances.
Redirecting top-up tax revenue would disproportionately affect low-tax countries like Ireland and the Netherlands, potentially reshaping their fiscal relationships with Brussels.
A budget deal is needed by year-end, but approaching elections in three major member states add urgency and risk to negotiations.

Background

EU budget negotiations are a regular seven-year cycle. The current multi-annual financial framework (2021–2027) is being succeeded by a new one, with talks ongoing. The OECD's 2021 global tax deal, signed by more than 130 countries, aims to stop a race among nations to undercut corporate tax rates. The US secured an exemption from the OECD framework because it introduced an equivalent national tax arrangement.

Key Perspectives

Supporters of the global tax revenue plan: argue the approach could garner more political support than the CORE tax because it targets companies' profits rather than revenue. Pascal Saint-Amans, former OECD official: says taxing profits makes sense given multinationals' activities target EU markets, and that CORE is a "blinder" levy. EU governments opposing CORE: notably Germany, consider the revenue-based tax particularly toxic, contributing to the deadlock over new own resources.

What to Watch

Bilateral discussions between Costa's team and EU countries set to begin next week.
The leaders' summit on November 26–27, where Costa may present new budget figures and tax proposals.
Elections in Poland, France and Italy in 2027, which could disrupt the negotiating calendar if no deal is reached by year-end.

Sources

EU eyes global tax deal revenue to boost next budget · Politico Europe

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12 claims in this story checked against 1 source: 11 supported.

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SupportedThe Commission is considering directing global minimum-tax revenue to the EU’s next seven-year budget, according to four EU diplomats with knowledge of the proceedings.Politico Europe: “The European Commission is exploring whether to use revenue from a global tax agreement on multinational companies to finance the EU’s next seven-year budget, four EU diplomats with knowledge of the proceedings told POLITICO.”
SupportedPascal Saint-Amans said, “The corporate income tax is about taxing companies based on their profitability. CORE is not about that, CORE is about taking a toll blindly.”Politico Europe: ““The corporate income tax is about taxing companies based on their profitability. CORE is not about that, CORE is about taking a toll blindly,” said Pascal Saint-Amans, a former OECD official and one of the architects of the global tax arrangement.”
SupportedSaint-Amans said multinationals’ “activities are taking place in Ireland, but are about managing the EU markets,” and that it “could make sense” to allocate top-up taxes to the EU budget.Politico Europe: “Saint-Amans defended the potential new own resource on the grounds that the multinationals’ “activities are taking place in Ireland, but are about managing the EU markets.” “That’s how I believe that it could make sense to visualize” the top-up taxes, he added.”
SupportedThe 2021 OECD deal requires EU countries to levy a 15% minimum corporate tax on multinationals with annual turnover above €750 million.Politico Europe: “Under the OECD tax deal from 2021, EU countries are compelled to levy a 15 percent minimum corporate tax on large multinationals with an annual turnover exceeding €750 million.”
Partly supportedThe move could help resolve deadlocked negotiations over new EU-wide taxes that have stalled budget talks.Politico Europe: “The idea could facilitate an agreement on new EU-wide taxes, known as own resources, which has emerged as a major stumbling bloc in the ongoing budget negotiations.”
SupportedThe tax revenue is currently collected by national governments.Politico Europe: “Currently, the revenue is collected by national governments.”
SupportedCosta is pressing leaders to reach a budget deal by year-end before elections in Poland, France and Italy risk derailing negotiations.Politico Europe: “The European Council President António Costa has urged countries to approve the new taxes to reduce national contributions to the bloc’s budget, which is worth €1.82 trillion according to the latest proposal from earlier this month. Costa, who is brokering budget talks, is pressuring leaders to reach a budget deal among themselves by the end of the year — before elections in Poland, France and Italy threaten to derail the negotiations.”
SupportedThe latest budget proposal is worth €1.82 trillion.Politico Europe: “the bloc’s budget, which is worth €1.82 trillion according to the latest proposal from earlier this month.”
SupportedEU governments remain divided over five proposed new taxes that the Commission estimates would generate €65 billion per year.Politico Europe: “EU governments are still at odds over five proposed new taxes that the Commission estimates would generate €65 billion per year.”
SupportedCORE charges a lump sum on companies’ revenues exceeding €100 million and is particularly unpopular in Germany.Politico Europe: “Among the options on the table, a corporate tax known as CORE — which charges a lump sum on companies’ revenues exceeding €100 million — has emerged as the most unpopular option and is particularly toxic in Germany.”
SupportedMacron supported funneling part of the tax on multinationals to the EU budget during an October summit, according to two diplomats.Politico Europe: “To break the deadlock, French President Emmanuel Macron supported funneling part of the tax on multinationals to the EU budget during a leaders’ summit in October, said two of the diplomats.”
SupportedRedirecting the revenue could hit Ireland and the Netherlands, and the Dutch government collected €449 million in 2026 from returns related to the global minimum tax.Politico Europe: “This could hit countries such as Ireland and the Netherlands which charge low corporate rates and collecting large sums from the top-up tax. The Dutch government alone collected €449 million in 2026 from returns related to the global minimum tax, according to Bloomberg.”