Germany is demanding a €400 billion ($456 billion) cut to the European Commission's proposed budget of €2 trillion for 2028-2034, warning that the current plans are "unaffordable," according to an internal government document seen by Reuters on Tuesday.Because the EU budget, called Multiannual Financial Framework, requires unanimity among all 27 member states, Germany's sharp opposition signals a tough battle ahead, with Berlin warning in the document that "as it stands, an agreement is impossible."As the EU's largest net contributor, Germany is alarmed by the proposed scale of the next seven-year budget, which is a significant increase from the €1.3 trillion budget for 2021-2027.Also Read: SAS to buy up to 40 Airbus A330 aircraft for over $10 billionBerlin argues that even with its proposed €400 billion trim, the budget would still be 27% larger than the current one, pushing Germany's annual contribution to over €50 billion.Also Read: Nearly 1 million new millionaires created worldwide in 2025, UBS report findsChancellor Friedrich Merz has urged member states to seal a deal this year to ensure planning certainty before the budget takes effect in January 2028, especially with major elections looming in France, Poland and Italy in 2027.($1 = 0.8780 euros)
Germany demands $450 billion cut to 'unaffordable' EU budget, document shows
Germany is pushing for a massive €400 billion cut to the European Commission's proposed €2 trillion budget for 2028-2034, deeming it "unaffordable." As the EU's largest net contributor, Berlin warns that an agreement is currently impossible due to the significant increase from the previous budget. Chancellor Merz is urging member states to finalize a deal this year to provide planning certainty ahead of crucial elections.
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