Germany demands major cuts to EU long-term budget

Germany is maintaining its demand for significant cuts to the European Union's long-term budget, targeting reductions of several hundred billion euros for the 2028–2034 period. German EU representative Gunther Krichbaum criticized European Council President Antonio Costa, suggesting Costa has “lost contact with reality” regarding his push for new EU-wide taxes to fund Brussels' expenditures.

Costa has argued that introducing “own resources”—such as taxes on tobacco, corporations, CO2 emissions, or electronic waste—is essential to avoid massive spending cuts. These proposed levies could generate approximately 66 billion euros annually but require unanimous member state approval. Currently, no member states have collectively supported the European Commission's five specific proposals.

Germany and its North European allies, who are major net contributors to the EU budget, are advocating for spending reductions rather than new taxation. Krichbaum emphasized that national budgets are under “enormous pressure” and that more realism is required regarding both spending and national contributions as negotiations intensify.