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EU Budget 2014 – 2020 Discussions

The EU has seen the official launch of its endeavours to agree a budget for its next financial cycle, 2014 - 2020, following the publication of the European Commission's proposal at the end of June. Taxand Germany reports on the proposed VAT treatment and timescales of the decision.

The plan, which runs to a record EUR1 trillion, was quickly criticised by some big contributing Member States for its proposal to introduce EU taxes. As a way of gaining favour with national governments, many of whom are introducing tough austerity measures, the Commission has proposed reductions in Member State contributions.

An EU value added tax on the exchange of goods as well as a financial transaction tax have been proposed to make up for the shortfall. Agriculture and regional policy, the EU's two lead spending areas, remain largely unchanged.

Taxand's Take

Member States and the European Parliament, who has final power to approve or reject the budget, must now come to an agreement over the coming year. Taxand Germany will monitor the budget's progress.

Your Taxand contact for further details is:
Helmut Janssen
T. +32 2 6277 760

Taxand's Take Author