Germany Faces Potential EU Budget Contribution of Up to EUR450 Billion
The European Union recently unveiled its proposal for the upcoming long-term budget covering the years 2028 to 2034, which is projected to reach nearly EUR2 trillion. This budget represents a significant increase over the previous allocation, raising concerns in Germany regarding its financial implications.
Federal Chancellor Friedrich Merz has expressed strong opposition to the proposed budget, particularly criticizing the idea of imposing corporate taxes at the EU level, as suggested by EU Commission President Ursula von der Leyen. Merz firmly stated that Germany will not support such measures, emphasizing the need for a thorough discussion on the budget's size and funding.
In light of the proposed budget, estimates suggest that Germany's contribution could increase to between EUR420 billion and EUR450 billion. This would mean that Germany may end up paying approximately EUR50 billion more to Brussels each year than it would receive in return. The precise financial impact of the new budget plan on Germany remains uncertain.
Additionally, there are fears that Germany could receive less financial support from the EU in the future. Kata Tüttö, President of the EU Regions, indicated that certain German states might miss out on EU funding due to the proposed changes in the distribution of financial resources. The current budget allocates significant funds to agriculture and cohesion policies aimed at addressing economic disparities across regions. The new plan, however, proposes a single large fund, which would require each EU member state to develop a National Reform and Investment Plan outlining their intended reforms and investments from 2028 to 2034.
Tüttö criticized the EU Commission for potentially relinquishing its oversight of the effects of these investments at local and regional levels, arguing that this could disrupt the valuable collaboration that has historically supported the EU's long-term objectives.
As the discussions around the EU's budget continue, the implications for Germany's economy and regional funding are critical issues that will need to be addressed in the coming months.