German Chancellor Friedrich Merz has rejected a proposal from European Commission President Ursula von der Leyen aimed at creating a common budget for the European Union amounting to €2 trillion.
During a press conference in Stevenage, North London, alongside British Prime Minister Keir Starmer, Merz specifically dismissed the idea of the EU imposing taxes on corporations, as suggested by von der Leyen.
He stated, “I can rule that out for Germany; we will not engage in such a course. We will not do that.”
Von der Leyen, a member of Merz’s Christian Democratic Union, is advocating for a significant increase in the EU’s multiannual budget to fund additional investments in security and defense.
According to the Commission’s vision, the budget from 2028 to 2034 should reach approximately €2 trillion, which is about €700 billion higher than the current seven-year budget.
Von der Leyen’s proposal also includes a corporate tax on large companies with annual revenues exceeding €100 million.
Merz emphasized the need to discuss budget financing, acknowledging that the current proposal “redistributes the proportions among various spending categories”. He added that it is positive that they are committed to making more efforts within the EU, particularly in the areas of defense and security.