German Chancellor Friedrich Merz and the leaders of five other major net contributor countries have called for substantial cuts to the European Union’s next long-term budget, arguing that the European Commission’s current proposal is financially unsustainable.
Speaking after a meeting in Berlin, Merz said the Commission’s proposed increase of up to 60 percent was “simply unaffordable” and should instead be reduced by several hundred billion euros.
The German chancellor stressed that the cuts would have to affect almost all areas of the EU budget.
Neither stingy nor free-spending
The confidential meeting in Berlin was attended by Danish Prime Minister Mette Frederiksen, Finnish Prime Minister Petteri Orpo and Austrian Chancellor Christian Stocker. The prime ministers of the Netherlands and Sweden joined via videoconference.
Together, the six countries account for around 40 percent of the EU budget’s financing. Merz also noted that they provide approximately 70 percent of bilateral assistance to Ukraine from EU member states.
“We are not stingy, but the increases in the figures proposed by the Commission do not correspond to reality,” Merz said.
Security and competitiveness at the center
In a joint statement, the six net contributor countries called for “realism and reforms” in the EU’s next Multiannual Financial Framework, which is due to take effect on January 1, 2028.
They said security, sovereignty, migration and the competitiveness of the European Union should be at the heart of the next budget.
“At a time when virtually all member states are taking ‘painful’ budgetary measures, the EU budget cannot be an exception,” the statement said.
The six countries are seeking to establish a common position ahead of EU consultations scheduled to begin in October, with the aim of completing negotiations by the end of this year if possible.
Opposition to new common debt
The six countries also rejected the issuance of new common EU debt, arguing that it would not provide a solution to the bloc’s budgetary challenges or serve as an alternative to structural reforms.
They further called on EU institutions to manage their responsibilities with existing staffing levels rather than expanding their workforce.
“With a 20th-century budget, we will not be able to meet the challenges of the 21st century,” Merz said.
The dispute is likely to intensify as EU member states negotiate the bloc’s financial priorities for the period beginning in 2028, with net contributors pushing for tighter spending while seeking to redirect resources toward security, competitiveness and other strategic priorities.
