Germany is maintaining its demand for major cuts to the European Union’s next long-term budget, despite recent electoral setbacks for Chancellor Friedrich Merz’s Christian Democrats.
German EU affairs minister Günther Krichbaum said Berlin’s position remained unchanged, arguing that national budgets were already under significant pressure. He also criticised European Council President António Costa’s calls for new EU-wide taxes, saying greater realism was needed on both spending and national contributions. The proposed new revenue sources could raise around €66 billion annually, but require unanimous approval from member states. Germany, the EU’s largest budget contributor, has called for cuts of around 20% and strongly opposed increasing national contributions or introducing a tax on corporations. Ireland, which currently holds the rotating EU Council presidency, is working on an updated budget proposal ahead of an October leaders’ meeting.
This position appears to contrast significantly with that taken by the European Parliament.
MEPs have called for a more ambitious 2028–2034 budget equivalent to 1.27% of EU gross national income, with new revenue sources generating around €60 billion annually. Parliament has also argued that funding should safeguard cohesion and agriculture while supporting competitiveness and defence.
