Germany urges EU budget cut of hundreds of billions of euros

September 10, 2026 at 04:10 PM1 min

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German Chancellor Friedrich Merz called for cutting the European Commission's proposed long-term EU budget for 2028-2034 by hundreds of billions of euros. He made the demand during talks with European Council President António Costa in Berlin on Wednesday. The push comes as Germany and five other net contributors insist on balanced cuts across all spending areas.

Key Facts

Germany, Denmark, the Netherlands, Austria, Finland and Sweden insist on balanced cuts across all EU spending areas.
These six net contributor countries finance about 40% of the EU budget.
The European Commission's plan for 2028–2034 totals nearly 2 trillion euros.
A German government internal document envisaged cuts of about 400 billion euros.
Berlin and Brussels aim to reach an agreement by the end of 2026.

Budget Opposition

Chancellor Friedrich Merz called the European Commission's nearly 2 trillion euro plan for 2028–2034 "simply unaffordable" amid budget austerity in member states. He rejected the idea of new EU joint borrowing and demanded spending be redirected toward competitiveness and defense. Germany, Denmark, the Netherlands, Austria, Finland and Sweden are pushing for balanced reductions in all spending lines. These six net contributors finance about 40% of the EU budget.

Negotiation Timeline

European Council President António Costa met Chancellor Merz in Berlin on Wednesday as part of a tour of EU capitals to explain the long-term budget. The EU budget, known as the Multiannual Financial Framework, requires unanimous approval by all 27 member states. Berlin and Brussels expect to reach an agreement by the end of 2026.