Ursula von der Leyen to deliver her state of the European Union address on 10 September
On 10 September 2025 at 09:00, Ursula von der Leyen will deliver her first State of the Union address since her re-election as the head of the European Commission, reviewing past achievements and outlining future priorities. Her speech is expected to focus on EU-US relations, continued support for Ukraine, European defence and security, sustainable prosperity, competitiveness, the green and digital transition and the protection of democracy and EU values. Following her intervention, MEPs will debate the Commission’s work and plans for the year ahead while presenting their own priorities. This annual debate allows Parliament to scrutinise the Commission’s work and help to steer EU policy. The debate can be followed live here.
European Commission proposes to boost tax and customs funding programmes
On 3 September 2025, the European Commission adopted a second package of seven sectoral proposals for the 2028–2034 EU budget, including a reinforced Single Market and Customs Programme worth €6.2 billion, doubling the current allocation. This new programme merges several previously standalone programmes (Single Market Programme, Customs, Fiscalis, Customs Control Equipment Instrument, and the Union Anti-Fraud Programme). It will break down cross-border barriers, enhance cooperation between national administrations, reduce administrative burdens in customs, taxation, and anti-fraud, and reinforce consumer protection and standardisation, the Commission said. The Fiscalis budget will rise over €475 million for 2028–2034, with 85% dedicated to modernising digital tax infrastructures that enable cross-border information exchange. The remaining funds will finance project-based cooperation, capacity building, and tools to fight tax evasion and fraud.
Feedback opportunity on the recast of the Tobacco Taxation Directive
On 3 September 2025, the European Commission opened a feedback opportunity on its proposal for a recast of the 2010 Tobacco Taxation Directive, which aims to better align the taxation of tobacco and related products with health objectives. The proposal, published on 16 July 2025, proposes to increase the minimum tax rates to reduce disparity in rates applied by Member States. It will also extend minimum taxes to new products such as e-cigarettes, heated tobacco and nicotine pouches. To curb illicit trade, the proposal includes applying the EU’s electronic excise monitoring system (EMCS) to raw tobacco. Member States must unanimously agree on the directive, which is set to take effect by 2028 with a four-year transition period. Feedback is open until 30 October 2025, with the deadline being extended daily until the proposal is available in all EU languages.
European Commission online workshop on alcohol taxation
The European Commission is organising an online workshop on 25 September 2025, from 9:30 to 12:00, to discuss the EU’s legal framework for alcohol taxation and the practical application of exemptions from excise duty on ethyl alcohol products. These exemptions apply when alcohol is used for industrial purposes, cosmetics, medicines or in foods and soft drinks, under Council Directive 92/83/EEC and Directive (EU) 2020/262. While harmonised at EU level, detailed rules are set by Member States, raising questions about clarity, efficiency and fitness for purpose in daily business operations, according to the Commission. The event will provide a platform to assess with stakeholders whether the current framework supports competitiveness and ensures smooth implementation. This workshop forms part of the broader “Reality Check series”, which examines EU rules across sectors to identify possible simplification opportunities. Registration is open until 17 September here.
MEPs to quiz European Commission on digital taxation
During the European Parliament’s Plenary session on 10 September 2025, MEPs are due to pose questions to the European Commission regarding the taxation of large digital platforms and the state-of-play in discussions on this topic at international level. Questions will be asked on behalf of the Economic Affairs (ECON) Committee regarding the taxation of the digital economy, with a focus on the OECD-G20 Two-pillar solution. In particular, the Commission will be asked about the state-of-play on Pillar One and whether, in the absence of progress at global level, it would possibly consider tabling a unilateral proposal such as a digital services tax (DST) targeting large digital multinationals. This follows the US administration’s strong criticism of DSTs and their use in Austria, France, Italy and Spain, as well as the recent G7 statement on a side-by-side approach under Pillar Two.
Simplification placed high in new Franco-German economic agenda for Europe
At the 25th Franco-German Council of Ministers on 29 August 2025, France and Germany launched a new Franco-German Economic Agenda to strengthen European sovereignty and competitiveness through coordinated initiatives across energy, trade, technology, industry, labour markets, finance, and the Single Market. A key focus is simplifying EU regulations to ease administrative burdens and enhance efficiency, particularly for small and mid-cap enterprises, while promoting digitalisation and a new “legislative mindset” of “self-restraint” to avoid unnecessary complexity. Both countries also back ambitious simplification of existing EU legislation and call for an expanded EU small mid-cap category (250 to 1000 employees). On competitiveness, they support deepening the Single Market, advancing the Commission’s plan for an EU-wide company form (28th regime) and ensuring fair competition through stronger enforcement of the Digital Services Act for very large online platforms.
