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Germany demands $450 billion cut to 'unaffordable' EU budget, document shows

Berlin says the proposed €2 trillion plan would leave Germany with annual contributions above €50 billion and strain member-state finances.

  • Germany demanded approximately €450 billion in cuts to the European Commission's proposed €2 trillion Multiannual Financial Framework for 2028–2034, citing affordability concerns in an internal government document reviewed by Reuters.
  • Berlin warned that an agreement is impossible in the current form, as the Multiannual Financial Framework requires unanimous approval from all 27 European Union states to proceed with negotiations.
  • Even with the proposed €400 billion reduction, German officials argue the €2 trillion package remains unsustainable, as the budget would still be 27% larger than the current cycle.
  • Chancellor Friedrich Merz urged member states to finalize an agreement this year to ensure planning certainty before 2028, citing upcoming elections in France, Poland, and Italy in 2027.
  • Supporters of the European Commission argue that Europe faces challenges requiring greater collective investment in defense, climate, and industrial competitiveness, countering Berlin's focus on fiscal discipline.
Insights by Ground AI

14 Articles

The EU Commission intends to spend two trillion euros between 2028 and 2034. A radical reduction demand comes from Berlin.

·Frankfurt, Germany
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Center

Germany calls for EU financial planning to be cut by around EUR 400 billion for 2028 to 2034.

·Germany
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Lean Right

In a government paper, Germany mentions for the first time an order of magnitude for the planned EU budget, which is significantly lower from the Commission's proposal.

·Düsseldorf, Germany
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Bias Distribution

  • 43% of the sources lean Right
43% Right

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Reuters broke the news in New York, United States on Tuesday, June 30, 2026.
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