The European Commission is reportedly exploring using revenues from a global corporate tax agreement targeting large multinationals to fund the EU's next seven-year budget, Politico reports, citing four EU diplomats

The European Commission is reportedly exploring using revenues from a global corporate tax agreement targeting large multinationals to fund the EU's next seven-year budget, Politico reports, citing four EU diplomats.

Attempts to attach new own resources to the EU's multiannual budget follow a familiar sequence: the Commission floats a revenue idea, member states split along net-contributor lines, and the proposal emerges from Council negotiations diluted or displaced by national contributions. Pillar Two top-up taxes are collected nationally, so the proposal in effect asks capitals to cede part of a revenue stream they already regard as their own, which has historically been where such plans stall. Unanimity requirements on own-resources decisions give holdouts effective veto power, and past episodes of this kind have run for years rather than quarters. The channel to listed equities is indirect: implementation of the minimum tax itself is already law in most member states, so the read-across for the EURO STOXX 50 is about fiscal capacity and any supranational borrowing it might underpin rather than a change in corporate tax burdens. What is worth watching is whether the idea survives contact with the larger net payers and how it interacts with the joint-debt debate, since earmarked revenue streams have on previous occasions been the mechanism used to legitimise new common issuance. As a report sourced to unnamed diplomats rather than a formal proposal, it reads as a kite-flying exercise early in the budget cycle.