EU frugal states demand major cuts to proposed 2028-2034 budget

A group of European Union 'frugal' member states, led by Germany, Austria, Denmark, Finland, the Netherlands, and Sweden, is coordinating a campaign to demand significant cuts to the European Commission’s proposed budget for the 2028–2034 period. During a meeting in Berlin, German Chancellor Friedrich Merz and Austrian Chancellor Christian Stocker advocated for a reduction of several hundred billion euros, arguing that the current proposal, valued at nearly two trillion euros, is unaffordable and needs modernization to focus on security, defense, and competitiveness.

Chancellor Stocker criticized the proposal as “unacceptable,” noting that it is difficult to justify the largest budget in history while national governments implement austerity measures. The group also rejected new common EU debt as a solution. These negotiations come as the EU seeks to finalize its financial framework before 2027.

On a regional level in Germany, state governments are also navigating fiscal challenges. In Schleswig-Holstein, Finance Minister Silke Schneider is defending a 2027 budget that balances investment in education and digitalization with necessary savings. Meanwhile, Saxony has introduced a record double budget for 2027/2028 totaling 53.5 billion euros, which includes plans for limited new borrowing to support infrastructure and municipal investments despite intended staff reductions.