German Chancellor Friedrich Merz Calls for Multi‑Hundred‑Billion Euro Cuts to EU Budget

German Chancellor Friedrich Merz has criticised the European Commission’s draft EU budget for 2028‑2034, describing the €1.9‑2 trillion proposal as “unacceptable” and “unbalanced”. He is demanding that the plan be reduced by “several hundred billion euros”, arguing that the Union cannot afford further spending increases.

Merz also rejects the Commission’s plan to introduce a new European corporate tax on large firms, saying Germany cannot accept such a levy. He called for broader cuts across all policy areas, a slowdown in hiring for EU institutions, and a reduction of bureaucracy to improve competitiveness. The demand was voiced after a meeting with Irish Prime Minister Micheál Martin, whose country currently holds the EU Council presidency and is trying to broker a compromise among member states.

According to Merz, other fiscally responsible countries share his view that the budget is too large. He suggested that an agreement on a reduced budget could be reached by the end of the year.