EU budget not delivering value for investment
In a significant development during the G20 finance ministers meeting in Durban, South Africa, German Finance Minister Lars Klingbeil has expressed strong opposition to the European Commission's proposal for a new revenue source for the EU budget. The proposal includes a tax on large companies with an annual turnover of more than 100 million euros and the redirection of 15% of revenues from national tobacco taxes to Brussels.
Minister Klingbeil, speaking on the sidelines of the meeting, expressed concerns about the proposal's alignment with Germany's economic goals, which aim to strengthen the country's economy, secure jobs, and attract investments. He emphasised that Germany cannot accept the proposal as it stands, stating that it sends the wrong signal.
The German Finance Minister's criticisms extend to the proposal to redirect 15% of tobacco tax revenues to the EU budget. He believes that such a move could negatively impact the country's fiscal autonomy and financial limits, particularly in the context of the proposed EU budget.
It is important to note that the European Commission has proposed financial contributions for EU companies and permanent establishments as part of its latest own resources proposal for the EU budget. However, specific details about a corporate tax proposal that Minister Klingbeil has rejected are not readily available.
The tax on large companies and the redirection of tobacco tax revenues are two of several new revenue sources proposed for the EU budget. The debate surrounding these proposals is expected to continue as the EU shapes its long-term budget.
This stance by Minister Klingbeil comes amidst ongoing tariff negotiations with the United States, where he has suggested the EU should take decisive measures if negotiations fail. However, this does not directly relate to a specific corporate tax proposal.
As the discussions unfold, it remains to be seen how the EU will address the concerns raised by Minister Klingbeil and other member states regarding the proposed tax on large companies and the redirection of tobacco tax revenues to the EU budget.
The German Finance Minister, Lars Klingbeil, expressed concerns about the proposed EU budget's alignment with Germany's economic goals, including its business objectives and finance management. He believed that the proposal to redirect 15% of tobacco tax revenues to the EU budget could negatively impact Germany's fiscal autonomy and financial limits.
Minister Klingbeil also strongly opposed the proposal for a new revenue source for the EU budget, which includes a tax on large companies with an annual turnover of more than 100 million euros, arguing that it sends the wrong signal and could potentially hinder Germany's efforts to attract investments.
