German Finance Minister Lars Klingbeil reiterated his criticism of the European Commission’s proposed budget draft on Thursday, stating that the corporate tax scheme included in the plan “sends the wrong signal.”
Speaking at the G20 finance ministers’ summit in Durban, South Africa, Klingbeil said, “We want everyone to come to Germany, we want investments to be made in Germany and Europe.” “In this context, the corporate tax scheme proposed by the European Commission sends the wrong signal.”
This statement parallels the German government’s statements on Wednesday opposing the corporate tax scheme. Government spokesman Stefan Kornelius said, “A comprehensive increase in the EU budget is unacceptable while all member states are trying to balance their own budgets.” The European Commission has proposed a €2 trillion ($2.31 trillion) EU budget for 2028-2034. This budget plans to restructure traditional spending in agriculture and regional development, while placing a new emphasis on economic competitiveness and defense spending. The Commission also proposed a new tax for European companies with an annual turnover of more than 100 million euros. Klingbeil criticized the proposed tobacco tax, which is expected to generate 11.2 billion euros annually, saying, “Many things the Commission has proposed do not, at first glance, receive our approval,” and emphasized that Germany also opposes it.
