EU to Impose Annual Tax on Large Companies to Fund €1tn Common Budget

Brussels plans to impose an annual tax on large companies operating in Europe to fund the EU's common budget. US banks are expected to report sharply higher profits due to client activity in response to President Trump's shifting trade policies. UK water companies will use smart meters to increase prices during heatwaves. The London property market has seen sales of new-build homes slump to their lowest level since the global financial crisis. Louis Vuitton has reported customer data theft, and Trafigura, Mercuria, Glencore, and IXM could reap profits of over $300m from copper shipments in the US.

Brussels has proposed a new annual tax on large companies operating within the European Union to generate additional financing for the EU's common budget. The plan, as reported by Reuters, aims to target companies with a net turnover exceeding €50 million ($58.44 million) [1]. The tax would apply to all large companies operating in the bloc, regardless of their headquarter location, and would feature a "bracket" system where companies with the highest revenues would contribute more [2].

The proposal, which requires the backing of all 27 member states to come into force, is part of a broader effort to diversify the EU's revenue streams. Notably, the European Commission had initially considered targeting US Big Tech groups like Apple and Meta with a tax on digital services but has since dropped this plan, though these companies would still be subject to the broader levy [2].

The announcement comes as the EU braces for potential tariffs from the United States. President Donald Trump has been critical of the EU's regulatory stance on Big Tech and has widened his tariff war in recent days. The EU could also impose additional levies on non-recycled electronic waste and tobacco products [1].

Meanwhile, US banks are poised to report sharply higher profits due to increased client activity in response to President Trump's shifting trade policies. The six biggest US banks are expected to disclose second-quarter results next week, with analysts predicting significant trading revenue increases [3]. This is largely due to record trading days following Trump's tariff announcements in April. Goldman Sachs Group Inc. and Morgan Stanley are expected to lead in equities, while JPMorgan Chase & Co. is likely to lead in fixed income, currencies, and commodities [3].

The London property market has seen a significant downturn, with sales of new-build homes slumping to their lowest level since the global financial crisis. Additionally, UK water companies are using smart meters to increase prices during heatwaves. Louis Vuitton has reported a customer data theft incident, and Trafigura, Mercuria, Glencore, and IXM could reap substantial profits from copper shipments in the US [4].

References:
[1] https://finance.yahoo.com/news/eu-plans-tax-big-corporates-203802403.html
[2] https://www.investing.com/news/stock-market-news/eu-plans-new-tax-on-big-corporates-to-boost-budget-ft-4132593
[3] https://finance.yahoo.com/news/big-us-banks-set-post-110000648.html
[4] https://www.reuters.com/world/us/key-events-dates-track-trumps-tariff-saga-unfolds-2025-05-30/