Reuters: Germany demands €400 billion cut to "unaffordable" EU budget

Germany is seeking a €400 billion reduction to the European Commission's proposed €2 trillion European Union budget for 2028-2034, arguing that the current plan is "unaffordable", according to an internal government document seen by Reuters.

The proposal concerns the EU's Multiannual Financial Framework, which requires unanimous approval from all 27 member states, setting the stage for difficult negotiations over the bloc's next seven-year budget.

Germany warned in the document that "as it stands, an agreement is impossible," signalling strong opposition from the EU's largest net contributor.

Berlin argues that even with a €400 billion reduction, the proposed budget would still be 27% larger than the current €1.3 trillion framework covering 2021-2027.

According to the document, Germany's annual contribution would exceed €50 billion under the Commission's plans.

Chancellor Friedrich Merz has called on EU member states to reach an agreement this year to provide planning certainty before the new budget takes effect in January 2028, particularly with major elections scheduled in France, Poland and Italy in 2027.