The government of Malta has issued its support to the strategic objectives of the European Union’s Budget 2028–2034, but is opposed to any introduction of EU-wide taxes that have been submitted to the European Parliament for deliberation.
The message comes directly from Prime Minister Robert Abela, who told the Parliament of Malta that the island nation will stand firmly against the introduction of “bloc-level taxes”.
As it stands, the European Council is seeking to secure a budget exceeding €2 trillion for the Union’s next funding cycle, beginning in 2028. Of significance, discussions and proposals submitted to the European Parliament have seen political groups in Strasbourg advocate the creation of new revenue streams extending beyond traditional member state contributions.
The formation of the Budget 2028–2034 is viewed as a fundamental re-engineering of the EU’s fiscal strategy, as the bloc seeks not only to repay debts incurred through the COVID-19 recovery programmes, but more importantly to address what policymakers have described as Europe’s growing competitiveness and productivity crisis.
The revitalisation of European competitiveness has become a strategic priority as the Union seeks greater economic sovereignty and aims to strengthen the position of European businesses against rivals in the United States and China.
Yet the backdrop to the negotiations is dominated by growing financial obligations. The EU has committed to significantly higher defence expenditure, including €130bn in the continued support for Ukraine in its war against Russia, alongside investments in energy security, industrial resilience and technological innovation.
The outlook of the new budget differs markedly from previous funding cycles, with Brussels increasingly prioritising technology, innovation and strategic autonomy over traditional regional development and cohesion programmes. The budget must also help member states prepare for the economic consequences of an ageing population and the reskilling of Europe’s workforce.
For Malta, however, the debate has become increasingly focused on how the Union intends to finance these ambitions.
Abela framed Malta’s opposition to the proposals as a matter of principle, reiterating that “fiscal sovereignty must remain the sole competence of individual member states” and warning that Malta “will not accept the introduction of any EU-level taxes designed to sustain the bloc’s spending”.
Malta’s PM argues that the European budget should continue to be financed through the established framework of member state contributions rather than through direct union-wide taxation.
His intervention comes as Malta navigates an important transition in its relationship with EU finances. The 2028–2034 budget cycle is expected to see the country increasingly move towards becoming a net contributor to the Union budget cycle, helping finance programmes and investments designed to support the development and competitiveness of other member states.
Abela did not refer to any specific taxation measure currently under discussion in Brussels. Notably, the Maltese leader did not refer to a proposal submitted by Romanian MEP Victor Negrescu of the Progressive Alliance of Socialists and Democrats (S&D), which seeks the introduction of a 1% to 2% levy on gambling licences issued by EU member states.
The proposal forms part of the wider debate surrounding the creation of new EU “Own Resources” and argues that gambling-related revenues could be used to fund pan-European initiatives focused on education, workforce reskilling, healthcare and welfare programmes. While the measure has attracted support from some parliamentary groups, it remains under review and has not been adopted as official EU policy.
Gambling remains a crucial ingredient to the Maltese economy, with a 2025 report by the MGA’s annual detailing that the sector generated €1.39 billion in GVA in 2024, a figure that is continuing to grow.
Alongside the gambling proposal, MEPs have also examined alternative revenue streams linked to tobacco products, waste management, corporate energy consumption and contributions from large businesses operating within the Single Market.
The search for new Union revenues has received support from European Commission President Ursula von der Leyen and the European Commission, alongside political groups including the Progressive Alliance of Socialists and Democrats (S&D), the Greens/European Free Alliance and the liberal Renew Europe bloc.
Supporters contend that new funding mechanisms are necessary to repay common borrowing, support strategic investments and reduce pressure on national governments to increase direct contributions to the EU budget.
Malta, however, remains among the strongest advocates for preserving national control over taxation policies, viewed an economic right of member states.
For Abela, the debate extends beyond the size of the EU budget and touches on a broader question of sovereignty: whether Brussels should be granted the authority to raise revenues directly from European citizens and businesses, or whether such powers should remain exclusively in the hands of member states.
As stands, the governments of all 7 EU member states must approve on the terms and provisions of the Budget 2028 by the summer of 2027, in which the engineering of union-wide taxes has become its deepest point of contention, diving member state and political unions of the EU.
