BERLIN, July 17, 2025 (BSS/AFP) - The German government on Wednesday rejected a two-trillion-euro ($2.3 trillion) long-term budget proposed by the EU executive, saying it was too big.

"A comprehensive increase in the EU budget is not acceptable at a time when all member states are making considerable efforts to consolidate their national budgets," government spokesman Stefan Kornelius said in a statement. "We will therefore be unable to accept the Commission's proposal."

"Nor do we support the additional taxation of companies proposed by the European Commission," Kornelius said.

One of the new ways of raising money proposed by the EU executive is a tax on large companies in Europe with annual net turnover of more than 100 million euros.

However Kornelius said: "We must maintain the Commission's reform initiative and the focussing of the budget on new priorities."

The budget proposal for 2028-34 unveiled on Wednesday focuses on tackling overseas competition and countering Russia, while seeking to improve competitiveness in the bloc.

The plan earmarks up to 100 billion euros for the reconstruction of war-torn Ukraine and foresees an overhaul of the massive farming subsidies known as the common agricultural policy (CAP).