Denmark, Germany Lead EU Budget Cut Demands

Denmark and Germany, alongside the Netherlands, Austria, Finland, and Sweden, have issued a joint statement demanding a substantial reduction in the European Commission's proposed budget for the 2028-2034 period. The six nations argue that the commission's plan, which totals nearly 2 trillion euros, needs to be trimmed by "several hundred billion euros in a balanced manner."

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The European Union must make clear choices and reprioritize within the budget, just as we do ourselves.

Prime Minister Mette Frederiksen of Denmark, currently in Berlin for budget talks, emphasized the need for the European Union to "make clear choices and reprioritize within the budget, just as we do ourselves." This sentiment was echoed by German Chancellor Friedrich Merz, who stated that the commission's proposal "simply does not fit the times we live in." Merz stressed that the countries behind the declaration represent approximately 40% of the EU's budget.

The joint statement calls for reductions across "all expenditure areas," signaling a broad approach to fiscal consolidation within the bloc. The participating nations aim to conclude negotiations on the new EU budget by 2026. This initiative sees four of the six countries having previously formed the "Frugal Four" during the 2019 budget negotiations, known for advocating fiscal restraint.

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The European Commission's proposal simply does not fit the times we live in.

While Denmark has previously shown openness to a modest increase in the EU budget for priorities like defense, competitiveness, and green transition, it has also expressed concerns about the magnitude of proposed increases. The Danish Finance Ministry estimated that a previous proposal from the Cypriot EU presidency would have raised Denmark's annual contribution by 15.6 billion Danish kroner. The current proposal, even after revisions by the European Commission, is still considered too high by the coalition of fiscally conservative member states.

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We are not stingy.