Known as the Corporate Resource for Europe (CORE), the measure is part of the EU’s proposed long-term budget for the 2028–2034 period and would impose a fixed annual levy on companies with more than €100 million in net turnover.
The tax is designed to provide a new, stable source of revenue for the EU by requiring businesses that meet the threshold to contribute between €100,000 and €750,000 annually, depending on their revenue size. While the measure would apply to companies across the EU—as well as to non-EU firms with a permanent presence in the Union—it is sparking particular concern in Greece, where about 400 companies are expected to fall within its scope.
Critics argue that the CORE levy, although uniform in appearance, could have uneven and harmful effects in practice. Many of the affected Greek businesses operate with much lower profit margins than their European counterparts. For companies in sectors such as retail, manufacturing, and logistics—industries that often have high turnover but slim profits—the flat-rate tax could effectively function as a heavy additional burden. A company with just a 2% profit margin, for example, could end up paying a tax equivalent to 5% of its profits, while a more profitable firm with a 20% margin would pay only 0.5%.
Moreover, the CORE tax does not allow for deductions of intermediate costs, meaning companies are taxed on gross turnover rather than net value added. This structure risks triggering what economists call "tax cascading," where taxes accumulate along the production chain. In practice, this could raise consumer prices and discourage specialization by making complex supply chains less financially viable. Greek companies that serve as subcontractors or operate within multi-stage production networks are especially exposed to this risk.
The levy’s design also raises concerns about fairness. Companies with revenues between €100 million and €250 million would all pay the same €100,000 fee. This results in a higher effective tax rate for smaller firms within that bracket—0.1% for those just over the threshold versus 0.04% for those near the upper end. Since many Greek firms in this category tend to be on the smaller side compared to large multinational corporations, they would face a relatively steeper financial hit.
