Germany leads opposition to proposed 2,000 billion euro EU budget

German Chancellor Friedrich Merz has expressed strong opposition to the European Commission’s proposed nearly 2,000 billion euro budget for the EU’s next seven-year cycle. Following talks in Berlin with European Council President António Costa, Merz stated that Berlin will not accept the proposal without significant changes.

Germany is leading a coalition of net contributors, including Denmark, the Netherlands, Austria, Finland, and Sweden, calling for cuts of several hundred billion euros. While the Commission proposes spending an average of 1.26 percent of the EU's gross national income on common goals—such as defense, strategic technologies, energy independence, and migration—critics argue that the Union should not automatically increase spending while member states are practicing fiscal restraint.

A major point of contention is the proposed restructuring of funds into national and regional partnership plans totaling 865 billion euros. This would consolidate cohesion, agricultural, and social support. Under this plan, 450 billion euros would be allocated for economic and social convergence, including 218 billion for less developed regions and 300 billion for agricultural and fisheries income support. While the Commission claims this would increase flexibility, critics fear it could weaken the autonomy of individual regions.