Duitsland tegen 'EU-belasting' (en)

EUOBSERVER / BRUSSELS - The battle between the European Commission and the member states over future funding of the EU is set to become even more entrenched with Germany's rejection of a direct EU tax.

The Commission's attempts to sell the idea of having its 'own resources' - as direct taxation is cryptically known - were met with strong resistance from the finance ministry in Berlin.

"The idea of an EU tax is not something the German government will be following up", said a spokesperson for the finance ministry on Monday (2 February).

The problems in the EU are less to do with what is coming in as what is being spent, added the spokesperson, quoted by Reuters.

The comments come after Budget Commissioner Michaele Schreyer yesterday gave an interview in the German daily, Handelsblatt, in which she renewed her calls for an EU tax.

Where exactly the whole Commission stands on this issue and setting the financial ceiling for EU spending between 2007 and 2013 will be revealed on February 10 when it is set to publish a paper dealing with the question.

The battle lines have already been drawn however, as six of the largest net contributors to the EU budget - with Germany among them as the biggest - have asked for EU spending to be capped at 1% of gross national income (GNI).

This has provoked anger from the Commission which is arguing that it will not be able to carry out the tasks that have been set for it.

A spokesperson for Mrs Schreyer said yesterday that the Commission's position on the matter will be made known on 10 February.

"In the abstract the Commission is in favour of a genuine own resource", said the spokesperson adding that a report looking into the whole issue is expected before the end of this year.

At the moment, the Commission gets its money from a combined system of member state contributions, customs duties and agricultural levies - set to decrease with liberalisation.