On 16 July, the European Commission unveiled a nearly €2 trillion draft budget for 2028–34, anchored by a contentious new revenue measure: CORE, the Corporate Resource for Europe. Framed as a way to replenish the EU’s pandemic-recovery fund and expand defence and Ukraine spending, the levy would impose an annual lump-sum charge on all firms — EU and foreign — with more than €100 million in net turnover within the bloc.
The four-tier system ranges from €100,000 to €750,000 annually, depending on turnover levels. The Commission estimates CORE alone would raise €6.8 billion a year, forming part of a €58.5 billion bundle of new budgetary “own resources” that also includes levies on plastics, tobacco, e-waste, and ETS/CBAM auction shares.
But within 48 hours, political resistance erupted. German finance minister Lars Klingbeil criticised the measure at the G20 summit in Durban, calling it “the wrong signal” that could discourage investment. CDU leader Friedrich Merz declared Brussels had “no legal basis to tax companies,” echoing similar scepticism from the Netherlands, Sweden, and Finland. In Brussels, Monika Hohlmeier of the European People’s Party branded CORE “anti-competitive,” while BusinessEurope described the proposal as “totally counter-productive.”
Because EU budget decisions require unanimous approval from all 27 member states as well as European Parliament consent, the backlash all but guarantees CORE’s defeat — at least in its current form.
The levy’s design has raised economic and legal concerns. Unlike traditional corporate tax, CORE targets turnover rather than profit, disproportionately affecting low-margin sectors such as retail and automotive suppliers. This comes as several member states, including Portugal and Ireland, are cutting corporate tax rates to attract investment, and Washington threatens new tariffs, heightening anxieties around EU competitiveness.
Meanwhile, Commission officials are under pressure to repay €338 billion in COVID-19 recovery grants by 2058. Although increasing ETS and CBAM auction shares is politically easier, some member states argue those revenues are already earmarked nationally. The push for a new bloc-wide fee reflects Brussels’ broader goal of securing autonomous revenue streams, but may have overstepped political and legal boundaries.
The timeline for formal negotiations starts later this year, when EU finance ministers convene to deliberate the 2028–34 Multiannual Financial Framework. CORE is expected to be one of the first elements to be dropped, with officials already discussing alternative options — including an increase in carbon credit shares or a possible revival of the Financial Transaction Tax.
As of now, the CORE proposal looks destined for the same shelf as previous pan-EU tax ideas. The irony is not lost on observers: Ursula von der Leyen’s “industrial comeback” pledge may have been undone by her own revenue blueprint.
