The European Commission’s proposal to tap into national tobacco taxes to fund its expanded budget is likely to spark a contentious debate among member states, which may view it as an overreach into their financial sovereignty.
The Commission has proposed a €1.816tn budget for the 2028-2034 period, equivalent to 1.26% of the EU’s gross national income – up from around 1.1% in the current cycle. A key funding source for this expanded budget could come from new or increased levies on tobacco and nicotine products, according to several media reports.
