Six EU Leaders Oppose Budget Hike, Demand Cuts

Germany, alongside the Netherlands, Denmark, Austria, Finland, and Sweden, is pushing back against a proposed increase in the European Union's long-term budget. Chancellor Friedrich Merz stated after talks in Berlin that the suggested budget must be reduced by several hundred billion euros, warning that these cuts would impact all areas.

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These cuts will affect all areas.

This group of fiscally conservative nations, frequently referred to as the "frugal" members, deems the European Commission's current proposal unacceptable. The Commission suggested a budget of approximately 1.76 trillion euros for the 2028-2034 period, adjusted for inflation to 2025 prices. Germany, as the EU's largest economy, is the biggest contributor to this budget.

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The EU budget must remain affordable.

An agreement on the budget requires unanimous approval from all 27 EU member states. Negotiators aim to find a compromise by the end of the year, but reaching a consensus is considered extremely difficult due to widely differing national positions. Merz reiterated the goal of reaching an agreement by the end of 2026, though he acknowledged the deadline is not critical.

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The six countries are interested in incorporating realism and reforms into the negotiations.

Merz expressed the six countries' interest in incorporating "realism and reforms" into the negotiations. He argued that the Commission's plans do not account for the financial strain experienced by member states. This bloc finances about 40% of the EU budget and also provides substantial aid to Ukraine. Merz highlighted that the Commission's proposals would increase EU spending by up to 60%, stating, "At a time when all member states are consolidating budgets, this is simply unaffordable."

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At a time when all member states are consolidating budgets, this is simply unaffordable.