Friedrich Merz demands massive cuts to EU's future budget

German Chancellor Friedrich Merz has urged the European Union to slash its future budget by hundreds of billions of euros and accelerate reforms to enhance the continent's competitiveness. Speaking in Dublin alongside Irish Prime Minister Micheál Martin, Merz positioned himself with the "frugal" bloc of northern EU nations advocating for greater economy in the upcoming 2028-2034 budget, which is currently under discussion.

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We cannot afford exorbitant increases in spending.

The European Commission last year proposed a total budget of €2 trillion, a substantial increase from the current budget, intended to fund priorities in defense, ecological transition, and competitiveness. However, Merz, whose country holds significant influence within the EU, argued that the Union must instead push for "imperative" cuts amounting to hundreds of billions of euros. "We simply cannot afford exorbitant increases in spending," he stated, highlighting the EU's ongoing "considerable efforts to consolidate public finances."

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We must do more.

Irish Prime Minister Micheál Martin, whose country holds the rotating EU presidency, acknowledged the need for a budget that "meets its needs and ambitions for the future" while also "reflecting our current economic situation." He assured that Dublin would consider Germany's concerns and work towards finding compromises, expressing optimism that an agreement could be reached by year's end if all parties approach the task constructively. Merz also expressed concern that the EU's ambition regarding competitiveness has waned since mid-year, calling for more action and faster investment approval processes. He advocated for "dismantling bureaucracy" to improve the situation.

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meets its needs and ambitions for the future, reflecting our current economic situation.