Klingbeil slams EU budget plans: Strong reactions expected!

Klingbeil slams EU budget plans: Strong reactions expected!

In a clear position, Finance Minister Lars Klingbeil rejected the EU Commission's proposals for the new EU financial framework for the years 2028 to 2035. He made the announcement on Thursday during the G20 meeting in Durban, South Africa. Klingbeil explained that the federal government is interested in a strong EU, but that the financial situation must be preserved. The focus of the discussion is the planned increase in the EU budget to around two trillion euros, which represents an increase of around 700 billion euros compared to the previous budget period.

The EU Commission, under the leadership of President Ursula von der Leyen, is proposing, among other things, a new corporate taxation that would impose an additional levy on companies with a turnover of over 50 million euros. Klingbeil, who describes this proposal as counterproductive, emphasizes that such a levy could endanger the competitiveness of Germany and the EU as a safe haven for investments. He points to the strong resistance from business associations and the CDU/CSU.

Resistance to additional taxes

Government spokesman Stefan Kornelius had already made the federal government's position clear on Wednesday evening. He explained that a comprehensive development of the EU budget could not be achieved in a phase of national budget consolidation. Kornelius also emphasized the need to improve Europe's competitiveness and become defense-ready. The rejection of corporate taxation is underpinned by criticism from industry representatives such as VDA President Hildegard Müller, who warned that such additional taxes could weaken competitiveness.

What should be highlighted is the planned staggering of taxes for companies with different sales areas. For example, companies with a turnover of between 100 and 249 million euros should pay a tax of 100,000 euros, while the levels go up to 750,000 euros for companies with a turnover of 750 million euros and more. These proposals are expected to generate revenue of around 58.5 billion euros annually, which amounts to an additional burden for many companies.

Calls for an alternative approach

The Federal Association of German Industry (DIHK) is calling for companies to be supported instead of additional taxes. Criticism from the environmental movement is also loud: BUND describes the proposal as “zero number for nature conservation” and criticizes the lack of financial commitments to support nature conservation measures. The WWF also warned of the negative impact of possible cuts to climate and nature protection on crisis management.

The negotiations over EU finances must be decided unanimously by the 27 EU governments and require an agreement with the EU Parliament. The federal government sees the reform approach and the alignment of the budget on new priorities as correct, but will not be able to accept the current proposal. Given the complexity, lengthy negotiations are expected until 2027.

Overall, it is clear that future EU finances are caught between national interests and the EU's common goals, which makes the coming talks all the more fragile.

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