EU: Six 'Frugal' States Demand Drastic Cut to Brussels' Budget Proposal

Six "frugal" European Union member states have jointly called for a substantial reduction in the European Commission's proposed budget for the 2028-2034 period. The group, comprising Germany, Austria, Denmark, Finland, the Netherlands, and Sweden, stated that the EU must make "clear choices and redefine its budgetary priorities, just as we do at home."

These nations are demanding a reduction of "several hundred billion euros" from the proposed budget, which they deem unbalanced. German Chancellor Friedrich Merz, speaking at a press conference in Berlin alongside his Finnish, Austrian, and Danish counterparts, noted that the six countries collectively finance approximately 40% of the EU budget. He emphasized, "We are not stingy, but these kinds of allocations proposed by the Commission simply do not correspond to our times."

The "frugal" states are pushing back against the European Commission's proposal for a total budget of 2 trillion euros, representing a roughly 60% increase compared to the current budget. As net contributors to the EU budget, they advocate for stricter fiscal discipline, a stance that traditionally puts them at odds with countries like Italy, Spain, and Poland.

Furthermore, the "frugal" group desires a greater emphasis on defense spending, particularly in light of the current geopolitical climate with a hostile Russia. They also seek to bolster European competitiveness against global powers like the United States and China, especially in key sectors and technologies. This position has led to clashes, such as Chancellor Merz's opposition to French President Emmanuel Macron's proposal to use borrowing to help finance the future budget during a June summit.

European leaders aim to reach a common position on the budget by the end of the year, with key summits scheduled for October, November, and December in Brussels. The urgency stems from a desire to finalize the budget before the 2027 elections in several member states, including France, where far-right parties could potentially gain power. European Council President António Costa has begun a tour of EU capitals to facilitate progress on this critical financial decision.