Germany backs EU budget overhaul and ESG reporting simplifications

The European Commission has presented a draft multi‑annual financial framework (MFR) for 2028‑2034 that proposes only a modest increase to the EU budget. German officials and business groups argue that, despite a weak economy, Germany will remain a net contributor, having paid €13 billion more to the EU than it received last year. The draft foresees a large “Resilience and Recovery Facility” that could generate about €66 billion of indirect benefits for the German economy, even though direct grants will be far smaller.

At the same time, the Deutsche Kreditwirtschaft (DK) welcomed the EU’s Omnibus Initiative on sustainable finance, calling for the planned simplifications of ESG reporting obligations to explicitly cover banks and other credit institutions. DK warns against new reporting mandates that could increase bureaucracy for financial firms and urges that thresholds for disclosure‑requirements be adjusted to reflect the realities of the banking sector, while emphasizing the importance of transition plans for corporate sustainability strategies.