Berlin Pushes Back: Dismisses EU Budget Proposal as "Unacceptable"

The Greek Courier

Yiannis Damellos

The German government has voiced its disapproval regarding the European Commission's primary proposals for the upcoming EU budget, deeming the proposed increase in expenditures as "unacceptable." There are also concerns about plans to impose taxes on large corporations. 

"The German government will not endorse the Commission's proposal. An overall rise in the EU budget is unacceptable at a time when all member states are making substantial efforts to stabilize their national finances," stated government spokesman Stefan Cornelius. He was referring to the €2 trillion budget suggested by the European Commission for the Multiannual Financial Framework spanning 2028-2034, which is €700 billion more than the current fiscal period. This proposal primarily focuses on enhanced spending for defense and competitiveness.

As a new revenue source for the EU budget, the Commission has suggested a tax on large companies with an annual revenue exceeding €100 million, aimed at alleviating the financial burden on member states.

Berlin has rejected this proposal, instead favoring fundamental reforms within the EU, prioritizing competitiveness and defense preparedness.

The German business community has already raised objections to the taxation of large corporations, spearheaded by the German Automotive Industry Association (VDA). “Any increase in taxes or the introduction of new levies is unacceptable—both at the national and EU level,” asserted President Hildegard Müller, who argued that “a tax imposed regardless of profitability would be particularly harmful to growth, as it would undermine the competitiveness of EU companies.” Prior to the Commission's proposal, the German Chamber of Industry and Commerce (DIHK) had also indicated that such a measure would convey “a completely erroneous message.” CEO Helena Melnikov emphasized the need for a shift in support for businesses rather than imposing additional levies.

Simultaneously, criticism has emerged from German environmental organizations, which feel their concerns are being overlooked.

The German Federation for the Environment and Nature Conservation (BUND) remarked that the Commission’s proposal receives “zero marks for nature conservation.” BUND President Olaf Bund noted that the proposals “lack specific financial commitments, such as the execution of the EU Restructuring Act for nature restoration.” Meanwhile, WWF criticized the suggested reductions in environmental and nature protection, especially in light of worsening crises—“and this during yet another summer of heatwaves, forest fires, and floods.”