Ripe for Reform – What’s in the EU Budget Proposal and What Should Come Next

The European Commission’s proposal for the EU budget from 2028 to 2034 is now on the table. The Jacques Delors Centre (Hertie School) has analyzed the document and outlined the aspects that will shape the debate. The key issues are more flexibility for the Commission and the Member States in how funds are used, and the introduction of additional EU taxes.
I find the latter particularly interesting, because this is where real fundamental questions arise. Is the Carbon Border Adjustment Mechanism (CBAM) a good idea, or is it harmful to the economy? If it turns out to be harmful, it would be disastrous to cement it in place just because of its importance for the EU budget. A similar issue exists with the planned tobacco tax. Higher tobacco taxes strengthen organized crime, since they make it more attractive for consumers to buy untaxed products. You can find the policy brief on the Hertie School’s website.