German chancellor warns against plans for massive increase in EU’s long-term budget

German Chancellor Friedrich Merz on Thursday met with five other European heads of government to forge an alliance against plans for a massive increase in the EU’s long-term budget.

The group comprising Germany, the Netherlands, Denmark, Austria, Finland, and Sweden, agrees that the budget must be cut by several hundred billion euros compared to the European Commission’s proposal, the German Press Agency (dpa) cited Merz as saying in Berlin.

"And these cuts will have to affect all areas. It was agreed that we would go into the consultations in Brussels with a common position: 'The EU budget must remain financially viable,’" he added.

According to Merz, the European Commission’s current budget proposals call for an increase of up to 60%.

“In times of budget consolidation across all member states, this is simply unaffordable,” the chancellor said.

Merz met at the chancellery with the heads of government of Denmark, Austria, and Finland. The Dutch and Swedish heads of government joined via video conference.

The group considers the European Commission’s current budget proposal unacceptable.

Tough negotiations over funding

The current goal is to reach a compromise by the end of the year — and thus before the presidential election in France.

However, reaching an agreement among EU member states on the size of the new EU budget by the end of the year is considered extremely ambitious, as the positions of the 27 member states are very far apart and a unanimous decision is required.

While Merz reiterated the target date of the end of 2026, he added: “It doesn’t have to happen, but it would be good if we could pull it off.”

'Realism'

Merz said that there was a shared interest in advocating for realism and reforms in the negotiations. He added that they were not being stingy, but that the European Commission’s proposals were out of step with the times.

The group finances about 40% of the European budget.

“That means we are, so to speak, the group of major contributors to the European budget,” the chancellor said.