The EU is swapping its planned digital levy for a corporate levy as Trump pressure builds. Brussels still needs revenue, with €800B of NextGenerationEU refinancing due from 2028, so the tax base widen

What happened: The EU Commission abandoned its planned digital levy and will instead introduce an annual levy on large corporations operating in the EU, following pressure from the US president. Key numbers: Companies with net revenues above €100 million would pay €100,000 to €750,000 per year depending on revenue class. The €800 billion NextGenerationEU refinancing comes due from 2028 onward. Why it matters: The article argues the digital tax was meant as a trade-policy weapon against US and Chinese digital corporations, and that European companies will now fill the budgeted revenue gap.

The EU Commission abandoned its planned digital levy and will instead introduce an annual levy on large corporations operating in the EU, following pressure from the US president.

The article argues the digital tax was meant as a trade-policy weapon against US and Chinese digital corporations, and that European companies will now fill the budgeted revenue gap.