Europe Much criticism of von der Leyen's proposal for a trillion-euro budget

SDA

17.7.2025 - 01:08

Ursula von der Leyen, President of the EU Commission, speaks at a press conference. Von der Leyen presented the Commission's proposals for the EU budget. Photo: Ansgar Haase/dpa
Ursula von der Leyen, President of the EU Commission, speaks at a press conference. Von der Leyen presented the Commission's proposals for the EU budget. Photo: Ansgar Haase/dpa
Keystone

The proposal by EU Commission President Ursula von der Leyen for the European Union's next long-term budget has been criticized from various sides.

Keystone-SDA

The German government will not be able to accept the Commission's proposal, according to government spokesman Stefan Kornelius. An additional burden for companies proposed by the authority would also not find support in Berlin.

Von der Leyen wants a two trillion budget

The EU Commission wants to increase the budget for the years 2028 to 2034 to around two trillion euros, for example to enable additional investments in security and defense. This is around 700 billion euros more than is currently estimated for the current seven-year budget period. Kornelius stated that a comprehensive increase in the EU budget was not feasible at a time when the member states were making considerable efforts to stabilize their budgets.

The budget sets upper limits for the EU's annual expenditure and how it is to be used. As the member state with the strongest economy, Germany usually contributes just under a quarter of the funds.

Criticism of possible new burden for companies

However, an additional levy on large companies intended by the EU Commission to ease the burden on member states is not only being criticized by the German government.

The German Association of the Automotive Industry (VDA) said in advance that companies in Germany and Europe were in an extremely difficult economic situation. "Any tax increase or the introduction of additional levies is therefore out of the question - both at national and European level," said President Hildegard Müller. A tax levied regardless of profit would have to be classified as particularly detrimental to growth - it would weaken the competitiveness of companies in the EU.

Even before the Commission's proposal was presented, the DIHK also stated that such a measure would be "completely the wrong signal". Companies need a tailwind, not additional levies, said Helena Melnikov, Managing Director of the DIHK.

Commission wants a graduated corporate tax

As one of several new sources of revenue for the EU budget, the Commission is proposing a levy for large companies with an annual turnover of more than 100 million euros. Companies are to make staggered contributions to Brussels based on their annual net turnover: 100,000 euros for a turnover of 100 million euros to 249 million euros, 250,000 euros for a turnover of up to 499 million euros, 500,000 euros for a turnover of up to 749 million euros and 750,000 euros for a turnover of 750 million euros or more.

The Brussels authority is also planning a levy on electronic waste that is not collected for recycling and wants 15% of the revenue from tobacco taxes to flow from the capital cities to Brussels. According to the Commission, this and other new own resources should generate 58.5 billion euros annually.

"Zero number for nature conservation"

The German Federation for the Environment and Nature Conservation (BUND) describes the Commission's proposal as a "zero number for nature conservation". According to its chairman Olaf Bandt, there is a lack of tangible commitments to funding, such as the implementation of the EU Restoration of Nature Act. This threatens to bring it to a standstill.

With the proposed cuts to climate and nature conservation, people in Europe would be ill-prepared for the worsening climate and biodiversity crises - "and in another summer of heatwaves, forest fires and floods", criticizes the environmental organization WWF.

The proposal must now be discussed by the EU countries and the European Parliament; long and complicated negotiations are expected.