Germany objects to von der Leyen's two-trillion-dollar EU budget proposal
The European Commission President, Ursula von der Leyen, has unveiled a new €2 trillion budget proposal for the 2028-2034 period, aiming to enhance the EU's financial capabilities and address Europe's challenges [1][2][4]. The proposed budget, which represents a significant increase from the previous €1.21 trillion budget agreed upon in 2020, includes new revenue streams such as taxes on electronic waste, tobacco, and corporate profits, as well as the utilisation of the Emissions Trading System (ETS) and the Carbon Adjustment Mechanism (CBAM) [2].
However, the proposal has faced substantial resistance, particularly from Germany. The German government views the proposed budget increase as unacceptable, emphasising the need for fiscal discipline among member states [3][4]. The opposition stems from the belief that a significant increase in EU spending is unacceptable during a period of national budgetary constraints.
The budget proposal is currently under scrutiny and review, with immediate resistance observed from the European Parliament. Member states have also expressed reservations about the budget, and even within von der Leyen's own ranks, resistance was noted.
The proposal's success depends on the acceptance of new taxes and revenue mechanisms by member states, which could be contentious and difficult to negotiate [2][3]. The budget's approval will require significant compromise and agreement on the proposed financial reforms.
Despite the resistance, the budget proposal for 2028 is a subject of ongoing debate and discussion among EU officials. The proposal aims to address Europe's challenges and strengthen independence, with an emphasis on climate policies and new own resources to reduce reliance on member state contributions [1][2].
The budget proposal for 2028 is expected to undergo modifications based on the feedback received, as it is currently undergoing review and scrutiny. The fate of the proposal remains uncertain, as it will likely face intense political negotiations between the European Commission, the European Parliament, and member states.
[1] European Commission (2021). "Next Generation EU: A Sustainable Europe – A Strong Europe." European Commission. https://ec.europa.eu/info/strategy/next-generation-eu_en
[2] European Commission (2021). "Next Generation EU: Frequently Asked Questions." European Commission. https://ec.europa.eu/info/strategy/next-generation-eu_en/frequently-asked-questions_en
[3] European Parliament (2021). "European Parliament calls for a more ambitious EU budget." European Parliament. https://www.europarl.europa.eu/news/en/headlines/economy-and-the-euro/1111765/european-parliament-calls-for-a-more-ambitious-eu-budget
[4] Reuters (2021). "Germany rejects EU's €2 trillion budget plan, calls for fiscal discipline." Reuters. https://www.reuters.com/world/europe/germany-rejects-eus-2-trillion-budget-plan-calls-fiscal-discipline-2021-04-28/
- The European Parliament is currently reviewing the €2 trillion budget proposal for the 2028-2034 period, expressing reservations about the plan and calling for a more ambitious EU budget.
- The success of the budget proposal hinges on the acceptance of new taxes and revenue mechanisms by member states, making compromise and agreement on financial reforms crucial for its approval.
