Germany Insists on €400 Billion Cut to European Union's 2028-2034 Budget
Germany Challenges Proposed EU Budget Increase
By Andreas Rinke
Germany's Position on the EU Budget
BERLIN, June 30 (Reuters) - Germany is demanding a €400 billion ($456 billion) cut to the European Commission's proposed budget of €2 trillion for 2028-2034, warning that the current plans are "unaffordable," according to an internal government document seen by Reuters on Tuesday.
Unanimity Requirement and Negotiation Challenges
Because the EU budget, called Multiannual Financial Framework, requires unanimity among all 27 member states, Germany's sharp opposition signals a tough battle ahead, with Berlin warning in the document that "as it stands, an agreement is impossible."
Germany's Concerns as Largest Net Contributor
As the EU's largest net contributor, Germany is alarmed by the proposed scale of the next seven-year budget, which is a significant increase from the €1.3 trillion budget for 2021-2027.
Proposed Trim and Impact on Contributions
Berlin argues that even with its proposed €400 billion trim, the budget would still be 27% larger than the current one, pushing Germany's annual contribution to over €50 billion.
Political Context and Timeline
Chancellor Friedrich Merz has urged member states to seal a deal this year to ensure planning certainty before the budget takes effect in January 2028, especially with major elections looming in France, Poland and Italy in 2027.
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(Reporting by Andreas Rinke, writing by Maria Martinez, editing by Thomas Seythal)
