Germany rejects EU’s proposed €2 trillion budget over spending concerns

Germany has firmly rejected the European Commission’s newly proposed €2 trillion budget, just hours after Commission President Ursula von der Leyen unveiled it on July 16 in Brussels.

The plan, covering the 2028–2034 period, represents a significant jump from the current €1.2 trillion budget, and aims to boost defence, competitiveness, and economic growth across the European Union. However, Berlin quickly dismissed the scale of the increase, Caliber.Az reports via Bloomberg.

“A comprehensive increase in the EU budget is unacceptable at a time when all member states are making considerable efforts to consolidate their national budgets,” said the German government’s chief spokesman. “We will therefore not be able to accept the commission’s proposal.”

While Germany traditionally resists higher EU spending, the tone of the response was unusually blunt, signaling difficult negotiations ahead.

A German official noted that Chancellor Friedrich Merz supports efforts to modernise the EU’s financial framework, particularly increased spending on defence and growth, but added, “the headline number is simply too big.”

Commission Vice President Roxana Minzatu acknowledged the road ahead: “This proposal is looking at a number of intense negotiations and debates between member states in the council and parliament. It has always been so.”

Key elements of the proposed budget include a €590 billion fund focused on competitiveness, prosperity, and security — with €451 billion allocated to help European companies stay competitive globally. Funding for agriculture, traditionally a major EU expenditure, would be cut to €300 billion in direct payments from the current €387 billion.

The commission also proposed €100 billion in support for Ukraine, aimed at recovery, resilience, and integration into the EU.

European Parliament President Roberta Metsola said the parliament will ensure strict oversight: “Fiscal discipline is not a choice, it is our responsibility.”

The proposal launches what is expected to be a lengthy negotiation process involving all 27 EU member states and the European Parliament. A final deal must be reached by the end of 2027.

By Sabina Mammadli