Netherlands finance minister labels EUR 2 trillion EU budget plan as "dead on arrival"

Netherlands finance minister labels EUR 2 trillion EU budget plan as "dead on arrival"

The Netherlands' finance minister has publicly dismissed the €2 trillion EU budget plan as "dead on arrival," signaling a strong opposition from a key member state. The minister's statement underscores the significant hurdles facing the European Commission's ambitious budget proposal.

The European Commission, under the leadership of President Ursula von der Leyen, has been pushing for a substantial increase in the EU's budget to fund various initiatives, including the recovery from the COVID-19 pandemic and the transition to a more sustainable economy. However, the Netherlands' finance minister has made it clear that the proposed budget is not a viable option.

The finance minister's stance is not isolated; several other EU member states, including Germany and France, have expressed reservations about the plan. Germany, in particular, has been vocal about its opposition to the proposed tax on corporate revenues, which was intended to be a significant source of funding for the budget. The tax, which would apply to companies with revenues exceeding €100 million, has been widely criticized for being regressive and potentially harmful to the competitiveness of European businesses [1].

The Netherlands' finance minister's comments come amid ongoing negotiations between the EU and the United States over trade tensions. The EU is preparing for the possibility of retaliatory action if no agreement is reached by August, with the finance minister emphasizing the need for a united and decisive response from the EU [2].

The opposition to the €2 trillion budget plan highlights the political challenges facing the European Commission. The plan, which was announced as part of the EU's long-term budget, is likely to face further resistance from member states and lawmakers, making its approval uncertain.

References:
[1] https://www.politico.eu/article/ursula-von-der-leyen-corporate-revenue-tax-eu-business/
[2] https://eutoday.net/germanys-finance-minister-rules-out-joint-eu-debt/