BERLIN, June 30 (Reuters) – Germany is demanding a 400 billion euro ($456 billion) cut from the European Commission’s proposed 2 trillion euro budget for the period 2028 to 2034, warning that current plans are “unfeasible”, according to an internal government document seen by Reuters this day Tuesday.
As the EU’s budget, called the Multiannual Financial Framework, requires unanimity among all 27 member states, Germany’s strong opposition signals a tough battle ahead, with Berlin warning in the document that “as it stands, a deal is impossible.”
As the EU’s biggest net contributor, Germany is alarmed by the proposed magnitude of the next seven-year budget, which represents a significant increase compared to the €1.3 trillion budget for the period 2021 to 2027.
Berlin argues that even with the proposed €400 billion cut, the budget would still be 27% larger than the current one, taking Germany’s annual contribution to more than €50 billion.
Chancellor Friedrich Merz urged Member States to reach an agreement later this year to ensure certainty in planning before the budget comes into force in January 2028, especially with important elections looming in France, Poland and Italy in 2027.
