Germany pushes for €400 bn reduction in EU 2028‑34 budget

Germany, the EU’s largest net contributor, has formally demanded a €400 billion cut to the European Commission’s proposed multi‑year budget of roughly €2 trillion for 2028‑2034. Berlin argues the plan is financially unviable and would force the bloc to choose between cohesion, farm support and newer priorities such as defence and border security. The German government’s internal paper, seen by Reuters, warns that without a substantial reduction the budget cannot be approved and threatens an indirect veto, as unanimous consent of all 27 member states is required.

The commission presented the long‑term budget on 16 July 2025, estimating it at 1.26 % of EU gross national income over seven years. Other member states, including Finland, Sweden, the Netherlands and Austria, have also criticised its size. The Irish EU Council presidency has suggested a 2 % (about €32.8 bn) starting cut. Chancellor Friedrich Merz has underscored that Germany will not add further contributions beyond its current €40 bn annual payment, reinforcing the demand for a more modest budget before the negotiations conclude later this year.