The European Commission has unveiled a €2 trillion spending blueprint for 2028-2034, its largest multi-year budget to date, aiming to boost defence, industrial competitiveness and support for Ukraine while introducing new revenue streams such as a tax on high-turnover companies and a €400 billion crisis fund financed through joint borrowing. An annex would also allow member states to channel parts of their allocations to build new nuclear capacity. Berlin rejected the plan within hours. Chancellor Friedrich Merz called the overall increase and the idea of an EU-wide corporate tax “unacceptable,” arguing the Union "must make do with the money it has." He also ruled out further joint borrowing, saying the legal basis for EU-level taxation is lacking. Finance Minister Lars Klingbeil echoed the stance, saying Germany wants leaner EU spending and confirmed the government’s opposition to nuclear subsidies financed by the bloc’s common budget. Germany’s pushback sets the stage for protracted negotiations that require unanimous approval from all 27 member states and consent of the European Parliament. With the EU’s biggest contributor balking and farmers, lawmakers and other governments already criticising shifts in agricultural and cohesion funding, the Commission faces an uphill battle to finalise the framework before the current budget period expires.