Germany Opposes EU Corporate Tax Proposal

All too big – but also too small – were some of the arguments when the EU countries on Friday held their first debate on the proposal for a new long-term budget. Germany says a sharp no to corporate taxation.

» Published: July 18 2025 at 13:21

Germany Opposes EU Corporate Tax Proposal
Photo: Ebrahim Noroozi/AP/TT

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The European Commission's initial proposal from Wednesday received criticism from various quarters when the EU ministers of the member states launched the debate at a ministerial meeting in Brussels on Friday.

– We regret that the Commission's level of ambition is not sufficient, said Spanish Secretary of State Fernando Sampedro, whose country wants a larger budget, higher loans and more grants.

– The proposed level is far too high. And we are very critical of new loan instruments and new funds, countered Finland's EU Minister Joakim Strand.

No to tax

Germany, in turn, is firmly opposed to Core - a special tax on Europe's largest companies that the European Commission wants to use to raise fresh money.

– Already dead from the start, stated EU Minister Gunther Krichbaum.

Countries like Germany and Austria are also giving Sweden support in the battle to keep the discounts that have previously been given to countries that pay more to the EU than they receive in pure grants.

The Commission wants to completely abolish the discounts, which would lead to a significant increase in, among other things, Sweden's EU fee.

– No government would accept such a large increase in expenditure as this would mean for Swedish taxpayers, said EU Minister Jessica Rosencrantz (The Moderate Party) in the debate.

Long struggle

The struggle between countries that want more or less will continue at a lower level before the heads of state and government are expected to hold their first discussion on the matter at the last summit in Brussels in December.

Jessica Rosencrantz is pleased with the support from Germany and certain of at least one thing: that the final budget for 2028-34 will not look like the original proposal.

– No, it won't. That's the only thing we can be sure of, says the EU Minister after the meeting in Brussels.

Wiktor Nummelin/TT

Facts: EU proposal for new taxes

TT

The European Commission proposes five new direct revenues for its next long-term budget:

Tedor – where 15 percent of the revenues from EU countries' minimum level for tax on tobacco products will annually provide 11.2 billion euros.

Core – annual lump sum from all companies that operate and sell in the EU and have an annual turnover of over 100 million euros. Will provide 6.8 billion euros per year.

CBAM – where 75 percent of the revenues from the EU's new import duty on certain goods manufactured with lower environmental requirements than in the EU will provide 1.4 billion euros per year.

ETS – where 30 percent of the revenues from the EU's emissions trading will provide 9.6 billion euros per year.

Electronic waste – where a tax of two euros per kilo will provide 15 billion euros per year.

Decisions on all new revenues require unanimity from all EU member states.

Source: European Commission

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By TTEnglish edition by Sweden Herald, adapted for local and international readers
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