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[POLITICS] · France, Germany, Belgium · 5 sources

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France and Germany face impasse over €2 trillion EU budget

France and Germany are facing a political impasse regarding the European Union's next long-term budget, estimated at approximately €2 trillion. As leaders gather for a summit in Brussels, the two largest economies in the bloc remain divided over fiscal policy.

Germany, led by Chancellor Friedrich Merz, is part of a group of nations advocating for spending containment and greater fiscal restraint. Merz has expressed opposition to significant budget increases, noting that a 50% rise would be unacceptable given the need for austerity in various member states.

Conversely, France, under President Emmanuel Macron, is resisting deep spending cuts. Macron faces significant domestic political pressure from opposition figures like Marine Le Pen and Jean-Luc Mélenchon, who view budget concessions as a betrayal of taxpayers.

European officials, including MEP Siegfried Muresan, have expressed concern that these divisions could delay the implementation of critical EU priorities, such as competitiveness, research, agriculture, security, and border protection. A compromise between Paris and Berlin is considered essential to unlocking negotiations among the 27 member states.

Entities

DWS Investments · Emmanuel Macron · European Union · Friedrich Merz · Marine Le Pen · Siegfried Mureșan

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