EU's budget is not perceived as a favorable agreement
In a significant turn of events, Germany's Finance Minister, Lars Klingbeil, has rejected the European Union Commission's proposed budget for the years 2028-2034. The €2 trillion budget, unveiled by EU Commission President Ursula von der Leyen, aims to address various challenges and includes substantial increases in funding compared to the previous budget.
The proposal outlines a significant allocation of resources, with €865 billion earmarked for agricultural, fisheries, cohesion, and social policies. Additionally, €451 billion is dedicated to investments in clean technology, digital advancements, biotechnology, defence, space, and agriculture, while approximately €300 billion supports farmers.
The budget also includes new EU-wide taxes on electric waste, tobacco, and corporate profits to raise additional revenue. Notably, 15 percent of national tobacco tax revenues are proposed to flow to Brussels as part of the EU budget, and the Commission proposes a tax on large companies with an annual turnover of more than 100 million euros as a new revenue source for the EU budget.
However, Klingbeil has expressed concerns about the financial implications of the proposed budget. He opposes the proposal for corporate taxation as part of the EU budget, stating it sends the wrong signal. Furthermore, he has emphasised that Germany cannot go along with the proposals, suggesting concerns about the financial burden, new taxation methods, or the conditions attached to spending.
Klingbeil made these statements on the sidelines of a meeting of G20 finance ministers in Durban, South Africa. He also highlighted his focus on strengthening Germany's economy, securing jobs, and attracting investments. The EU Commission's proposal also includes a tripling of spending on migration and border control, which could further fuel the debate.
It is important to note that the Bundesbank board has stated that despite massive public debt, there is no cause for concern. However, the specific details about Klingbeil's rejection of the proposal are not explicitly mentioned in the search results. As the negotiations continue, it remains to be seen how the EU budget will be finalised and whether Germany's concerns will be addressed.
The Finance Minister of Germany, Lars Klingbeil, has raised concerns about the financial implications of the European Union Commission's proposed budget for the years 2028-2034, particularly with regards to the proposed corporate taxation as part of the EU budget, arguing that it sends the wrong signal. Klingbeil also expressed that Germany cannot go along with the proposals due to concerns about the financial burden, new taxation methods, or the conditions attached to spending, while focusing on strengthening Germany's economy, securing jobs, and attracting investments in the business sector.
