Merz: EU’s proposed €1.76 trillion budget is “unaffordable”

German Chancellor Friedrich Merz has called for major cuts to the European Union’s proposed 2028–2034 budget, saying the European Commission’s spending plans are “unaffordable” for member states amid ongoing budget consolidation efforts.

Speaking at a press conference in Berlin on August 27 following talks with several European leaders, Merz said the European Commission’s current proposal envisages a spending increase of up to 60%.

“At a time when all member states are consolidating their budgets, this is simply unaffordable,” Merz said, adding that the proposal should be reduced by several hundred billion euros.

He stressed that the cuts should apply across all areas of the EU budget.

“We are not stingy, but the kind of spending appetite proposed by the European Commission is simply not appropriate for our times,” the German chancellor said.

Merz said the participating countries had agreed to coordinate their positions ahead of EU consultations on the bloc’s next multiannual financial framework. The consultations are expected to begin in October, with November and December set to be the decisive stages of the negotiations.

The Berlin meeting brought together the chancellors of Germany and Austria and the prime ministers of Denmark and Finland, while the leaders of the Netherlands and Sweden joined via video link.

According to Merz, the countries represented at the meeting collectively finance nearly 40% of the EU budget while accounting for around 70% of the bilateral assistance to Ukraine provided by the bloc.

The participants also opposed new joint borrowing by the EU and called for the European Commission’s proposed budget to be reduced by several hundred billion euros.

The EU’s multiannual budget is approved for seven years. Negotiations are currently underway on the bloc’s 2028–2034 financial framework, which the European Commission has proposed at €1.76 trillion, including inflation.