Six EU net contributors, including Germany and Austria, have called for substantial cuts to the European Commission’s proposed €2 trillion budget for 2028-2034, describing the plan as unaffordable amid national fiscal consolidation efforts.
German Chancellor Friedrich Merz, speaking after a meeting in Berlin with counterparts from Denmark, Finland, Austria, the Netherlands and Sweden, said the proposed budget increase of up to 60% was “simply unaffordable” in the current economic climate. The six countries, which finance roughly 40% of the EU budget and provide 70% of bilateral aid to Ukraine, have jointly proposed reducing the plan by several hundred billion euros across all spending categories, including agriculture and regional development funds.
The leaders emphasized the need for budgetary restraint, rejecting further common borrowing and additional staffing increases in Brussels. “New joint borrowing is not a solution to our fiscal challenges and does not replace structural reforms,” they stated in a joint declaration. Merz added that the EU budget must prioritize European defense, border protection and support for Ukraine, while ensuring value for money.
Austrian Chancellor Christian Stocker argued that citizens would find it difficult to accept discussions on the largest EU budget in history while member states implement austerity measures. “A strong budget is not necessarily the largest budget,” he said, stressing efficiency and targeted spending. Finland’s Prime Minister Petteri Orpo, whose country shares a 1,340-kilometer border with Russia, highlighted the changed security landscape in Europe, warning of daily hybrid threats from Moscow.
The current seven-year EU budget, totaling €1.4 trillion, is set to expire at the end of 2027. The new framework requires unanimous approval from all 27 member states. The six net contributors aim to finalize a common position by year-end to guide negotiations, with Merz stating that an agreement “would be good” but not strictly necessary.
