EU budget deadlock between frugal and spending countries may lead to new taxes (euobserver.com)

• EU budget deadlock persists between frugal and spending countries.
• Commission's €1.76 trillion proposal rejected; frugals push for €1.6 trillion or less.
• New own resources from carbon tariffs and tech taxes seen as possible compromise, requiring unanimous approval.

"EU leaders met on 19 June 2026 to discuss the next seven-year budget, but remain deadlocked. Frugal countries (Germany, Netherlands, Nordics) reject the Commission's €1.76 trillion proposal, while spenders (Commission, Parliament, cohesion friends) want a larger budget. Irish presidency will seek compromise. Possible solutions include new EU own resources from carbon tariffs, big tech taxes, and delaying pandemic loan repayments. Deadline: end of 2026."