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German Chancellor Friedrich Merz has opposed the European Commission's proposal for the European Union budget for the period 2028-2034, describing it as unaffordable and difficult to implement in its current form.
The European Commission has proposed a financial package worth over 1.6 trillion euros over the next seven years. The plan aims to finance traditional EU policies, such as agriculture and regional development, but also foresees greater investment in economic competitiveness, defense, security and foreign policy.
However, the German Chancellor estimates that the level of proposed spending exceeds the financial capacities of member states.
"What has been proposed so far is not feasible. It cannot be afforded. However, the budget negotiations must move faster. I want us to reach a decision within this year," Merz declared.
Berlin's stance poses a serious challenge to the European Commission, as Germany is the largest net contributor to the European Union budget. Any objection from Berlin carries considerable weight in negotiations on the EU's multiannual financial framework.
Germany's objections are also supported by the Netherlands, another country that contributes more to the European budget than it benefits from. Both countries are calling for a more prudent approach to spending and a greater balance between new strategic priorities and fiscal discipline.
The debate on the new budget is expected to be one of the most difficult political issues in the European Union in the coming months. Member states have different views on how the funds should be distributed, especially at a time when the EU faces numerous challenges, from global competition and the energy transition to security and defense.
Some member states are calling for increased investment in defense and technology, while others insist on maintaining traditional funds for agriculture and regional cohesion.
Despite the disagreements, some European governments hope the negotiations can be concluded by the end of the year. Ireland, which will take over the rotating presidency of the Council of the European Union, is expected to play a key role in preparing a new compromise between member states.
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