The German chancellor also doubled down on opposition to new joint debt at Thursday’s Charlemagne Prize ceremony.
EU spending must be modernised to focus on investment in defence and competitiveness with cuts to traditional farming or regional subsidies, according to Friedrich Merz, the German chancellor.
Germany – Europe’s largest economy and biggest contributor to Brussels’ budget – has laid down red lines as the debate over the EU’s next long-term spending plans kicks off.
“The content and structure of the EU budget have remained virtually unchanged over the past few decades,” Merz said on Thursday, adding that “more than two-thirds of European funds still go toward redistribution and subsidies”.
As negotiations over the European Commission’s proposed 2028-2034 €1.8 trillion spending plan gather pace, pressure is mounting on capitals to decide how to finance the bloc’s new priorities while repaying the Covid-era debt dating back to the last budget settlement.
