Germany's Battle for EU Budget Cuts: A €400 Billion Standoff

Germany is pushing for a €400 billion reduction in the European Commission's proposed €2 trillion budget for 2028-2034. As the EU's largest net contributor, Germany finds the current budget plan unaffordable and seeks unanimity among all 27 member states to finalize an agreement amid upcoming elections in major countries.

Germany has called for a massive €400 billion cut in the European Commission's proposed budget of €2 trillion for the upcoming 2028-2034 period, as revealed in an internal document accessed by Reuters.

The German government is labeling the current budget as "unaffordable," emphasizing that an agreement is currently unattainable. This stance sets the stage for a tough negotiation process among the EU's 27 member states. Germany, being the EU's largest net contributor, is particularly concerned about the sharp increase from the previous €1.3 trillion budget for 2021-2027.

Chancellor Friedrich Merz has urged for a timely agreement within this year to maintain planning certainty before January 2028, as critical elections approach in France, Poland, and Italy by 2027.