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Germany's Merz says EU budget proposal must be cut further - Finance news and analysis from Global Banking & Finance Review
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Germany's Merz says EU budget proposal must be cut further

Published by Global Banking & Finance Review

Posted on October 16, 2026

1 min read

· Last updated: October 16, 2026

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Germany's Merz Calls for Additional Cuts in EU Budget Proposal Ahead of Meeting

Merz Urges Further Reductions to European Budget

Current State of the EU Budget Proposal

BRUSSELS, Oct 16 (Reuters) - German Chancellor Friedrich Merz said on Friday the current European budget proposal must be cut further and that an additional European Council meeting is expected in November.

Prospects for a Budget Deal

He hopes a budget deal can be reached before the end of this year but he is not sure it will happen, Merz told journalists in Brussels.

Reporting and Editorial Credits

(Reporting by Andreas Rinke, writing by Kirsti Knolle, editing by Emanuele Berro)

Key Takeaways

  • Merz insists the current EU budget proposal must be reduced further, calling it unaffordable even after previous reductions. (bundesregierung.de)
  • Germany, as a leading net contributor, is aligning with other fiscally prudent EU states to demand cuts amounting to several hundred billion euros. (bundesregierung.de)
  • An extraordinary European Council meeting is expected in November, and leaders aim to reach an agreement—if possible—before the end of 2026, though divergences persist. (apnews.com)

References

Frequently Asked Questions

Who is urging further cuts to the EU budget proposal?
German Chancellor Friedrich Merz is urging further cuts to the current EU budget proposal.
When is the next European Council meeting expected?
The next European Council meeting is expected to take place in November.
What is the timeline for reaching a budget deal?
Friedrich Merz hopes a budget deal can be reached before the end of the year, though he is not certain it will happen.

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