Germany's Friedrich Merz demands major cuts to EU 2028–2034 budget

German Chancellor Friedrich Merz is pushing for significant reductions in the European Union's proposed budget for the 2028–2034 period. Following discussions with Lithuanian Prime Minister Mindaugas Sinkevičius, Merz indicated that a failure to reach an agreement on a new Multiannual Financial Framework could be the “financially most advantageous solution” for Germany, though he noted such an outcome would severely limit the EU's ability to act.

The European Commission has outlined a framework totaling approximately 1.76 trillion euros (adjusted for 2025 inflation). Merz is seeking a correction of “several hundred billion euros” to curb rising Brussels spending and improve parliamentary oversight.

Under EU treaty rules, if no agreement is reached by the start of 2028, the spending limits and provisions from 2027 would automatically extend. While this would ensure the payment of EU staff salaries, it would prevent the allocation of new financial commitments. Merz aims to conclude negotiations by the end of the current year to avoid this impasse, as the debate remains divided between net contributors like Germany and recipient nations seeking to protect agricultural and cohesion funds.