Germany and five EU states demand hundreds of billions in budget cuts
This digest was compiled by AI from multiple sources — links to the originals are below.
Germany and five other EU member states demanded on Thursday that the European Commission's proposed seven-year budget be cut by several hundred billion euros. Chancellor Friedrich Merz hosted leaders from Austria, Denmark and Finland in Berlin, with the prime ministers of the Netherlands and Sweden joining by video link. The six countries issued a joint statement calling for a substantial revision of the 2028–2034 budget.
Key Facts
- The six countries said the proposed budget of almost two trillion euros should be cut in a balanced way by several hundred billion euros.
- The six countries provide about 40% of EU budget financing and bear a significant share of spending on support for Ukraine, according to Chancellor Merz.
- The joint statement listed defence and security, support for Ukraine, protection of external borders, competitiveness and reducing bureaucratic burden as the main priorities.
- Danish Prime Minister Mette Frederiksen said the EU should direct more resources to defence and security in the face of threats from Russia.
- Chancellor Merz has previously called the creation of 2,500 new jobs in EU structures unacceptable and demanded large-scale reduction of bureaucracy.
The Berlin Meeting
Chancellor Friedrich Merz hosted talks in Berlin on Thursday with the leaders of Austria, Denmark and Finland. The prime ministers of the Netherlands and Sweden joined the meeting by video link. After the talks, the six countries issued a joint statement calling for a substantial revision of the EU budget for 2028–2034. The statement said the proposed budget of almost two trillion euros should be cut in a balanced way by several hundred billion euros.
Budget Priorities
Merz rejected accusations of excessive austerity, saying the issue was not abandoning funding for key areas but redistributing resources. He said EU spending should primarily match new challenges in security, defence and competitiveness. The six countries listed defence and security, support for Ukraine, protection of external borders, competitiveness and reducing bureaucratic burden as their main priorities. Danish Prime Minister Mette Frederiksen said the EU should direct more resources to defence and security in the face of threats from Russia. She said Russia threatens and tests Europe, with hybrid attacks observed across Europe almost daily, and called for strengthening European defence capabilities, increasing weapons and ammunition production, and enhancing protection of external borders.
Negotiation Stakes
The position of Germany and its allies may complicate already difficult negotiations among EU member states. The six countries provide about 40% of EU budget financing and simultaneously bear a significant share of spending on support for Ukraine, according to Merz. Frugal states traditionally oppose a substantial increase in the overall budget, while Italy, Spain, Poland and several other countries are interested in expanding spending. A separate dispute concerns spending on defence and competitiveness, with EU countries wanting to increase investment in security and technology while reducing dependence on external suppliers and competing with the US and China. Merz also insists on reducing spending on EU institutions, having previously called the creation of 2,500 new jobs in EU structures unacceptable and demanded large-scale reduction of bureaucracy.
1 source
Germany and five EU states demand hundreds of billions in budget cuts
