Brussels, 17 July 2025 (dpa/MIA) - The German government said it won't accept a proposal by the European Commission to boost the long-term EU budget to a total volume of €2 trillion ($2.3 trillion) for the years 2028 to 2034.

A comprehensive increase in the EU budget is not acceptable at a time when the member states are making considerable efforts to stabilize their budgets, German government spokesman Stefan Kornelius said.

"We will therefore not be able to accept the Commission's proposal," Kornelius said.

European Commission President Ursula von der Leyen said the proposed budget "addresses Europe's challenges" and "strengthens our independence."

The Commission's proposed budget is approximately €700 billion more than what is earmarked for the current seven-year period from 2021 until 2027.

The bloc's budget, dubbed the multi-annual financial framework, spells out the European Union's policy priorities for the coming years and how much money is allocated to different areas.

The majority of the long-term EU budget is financed by contributions from the member states, with each state paying a certain percentage of its gross national income. As the EU country with the strongest economy, Germany usually contributes just under a quarter of the available funds.

The proposed budget increase however could in part be financed through new sources for additional revenue, with the commission aiming to mobilize another €58.5 billion annually.

The Commission aims to reform the trillion-euro budget by focusing more strongly on expenses related to defence and competitiveness, adding new sources for revenue and changing funding criteria.

In concrete terms, the EU executive arm is proposing a levy on large companies with an annual turnover of more than €100 million and a tax on e-waste not collected for recycling as well as a share of revenues from national tobacco taxes to flow to Brussels.

Kornelius went on to say that this too was not supported by the German government, while he did praise the Commission's attempt to reform and the refocus of the budget on new priorities.

The proposal is to be debated and amended by the European Parliament and EU member states. Negotiations are expected to be lengthy and contentious.

Photo: MIA archive