An EU-wide levy on windfall profits of large corporations could pay for half of the EU’s current budget, new research from The Left in the European Parliament and the Tax Justice Network reveals.

The study provides concrete figures for each EU member state for the first time. The 209 biggest and most profitable companies globally posted excessive profits of nearly €2 trillion in 2022, €310 billion in the EU. A progressive excess profits tax of 20 to 40 per cent on those profits could collect roughly €107 billion per year within the EU – more than half the EU’s budget.

The EU has again opted for austerity, blocking investment in climate action and decent public services. As before the pandemic and the energy crisis, national governments must now cut billions from education, health, climate protection, and the maintenance and expansion of infrastructure. The economically destructive and immoral austerity policy is a political choice, not a necessity. This study shows that concrete alternatives exist and can help working families and small businesses while enabling climate protection and social security.

The study can be downloaded here: Link