Germany rejects EU budget proposal as “overestimated”

German Chancellor Friedrich Merz has said that the European Union’s draft long-term budget is “clearly overestimated” and warned against any increase in EU-level public debt as negotiations intensify ahead of the 2028–2034 financial framework.

Speaking to journalists upon arrival at an EU summit in Brussels, Merz said the proposed multiannual financial plan requires significant revisions to ensure predictability and fiscal discipline, Caliber.Az reports per Russian media. 

“Today’s agenda will include the issue of medium-term financial planning for the period from 2028 onwards. I would like us to reach a decision on this as early as this year. In my view, this is important, amongst other things, to ensure the predictability of the entire European Union budget,” he said.

He added that the current draft budget must be reduced and that EU revenues should be carefully reassessed.

“The proposed version is clearly overestimated. The figures need to be reduced. Furthermore, we need to discuss the European Union’s revenue. After all, we can only spend as much money as we have,” Merz stated.

The German chancellor also reiterated Berlin’s opposition to any expansion of EU debt, saying the position was shared by several member states.

“We must not do this. And Germany’s position on this issue is crystal clear,” he said, adding that he would raise the issue again at the European Council.

While acknowledging that the proposal does not command a majority among EU countries, Merz said negotiations should proceed in a “constructive” manner in order to reach a compromise.

“This is not a majority. However, we need to reach a unanimous decision. I therefore assume that today we will discuss this highly contentious issue in the spirit of constructive European cooperation,” he said.

He further suggested that a revised proposal would be needed before agreement could be reached, potentially in the second half of 2026.

“The current proposal is too high in absolute terms. A new proposal must be put forward. And then we need to discuss the structure of revenue and expenditure,” he added.

The European Commission has proposed a €1.76 trillion budget for the 2028–2034 period, which would mark one of the largest long-term financial frameworks in EU history. Germany remains the bloc’s largest net contributor.

By Sabina Mammadli