The problem must be seriously discussed and a solution found, he added. The German minister said the tax cuts in some EU countries were partly financed by Berlin’s contribution to the EU's coffers.
EU heads of state and governments agreed earlier this month on how to finance the EU from 2007-2013. Germany will continue to contribute large amounts to the common coffers, from which the eastern EU member states benefit.
"It cannot be, that some countries demand more funds from the EU budget while on the other hand failing to improve their own tax basis", Mr Steinbruck said.
The combined corporate tax rate in Germany is almost 40 percent.
Germany’s new coalition government had planned to raise VAT to 19 percent in 2007 in a bid to narrow the country’s budget deficit which is exceeding the levels set by euro zone criteria.
The EU is another version of the failing statist habits of this and previous European generations; it's a last attempt to shelter Europeans from the consequences of a rough and tumble, competitive world, a system of enhancing French and German political power. It resembles a modern version of Feudalism more than good economic thinking.
Europeans are welcome to it, but the EU will have no effect on the cultural catastrophes waiting for them twenty years down the road.
The demographic and immigration calamity facing Western Europe will leave behind an in-place bureaucracy which will serve a Pan-Eurabian purpose. Unassmilated Muslims with cross-border cultural similarities will find it very useful.
What radical Islam won't accomplish in the Middle East, it can accomplish in a subservient and craven Europe. Who said God doesn't have a sense of humor?