Berlin considers the current proposal too costly and warns that it is impossible to reach an agreement on it in its current form, Reuters reports.
The publication emphasizes that Germany, the largest net contributor to the European Union budget, is insisting on a significant reduction in the EU’s next Multiannual Financial Framework (MFF).
According to an internal German government document reviewed by Reuters, Berlin considers the proposed budget “unaffordable” and is demanding that it be reduced by approximately €400 billion from the European Commission’s initial proposal.
“In its current form, an agreement is impossible,” the German government document states.
The proposed EU budget for 2028–2034 amounts to about €2 trillion. This is significantly more than the current financial plan for 2021–2027, which totals about €1.3 trillion.
Germany fears an increase in the financial burden
Berlin points out that even after a €400 billion cut, the new budget will still be about 27% larger than the current one.
According to German estimates, this could increase Germany’s annual contribution to the EU budget to more than €50 billion.
Since the adoption of a multiannual budget requires unanimous consent from all 27 EU countries, Germany’s hardline stance could significantly complicate the negotiation process among member states.
German Chancellor Friedrich Merz has called on EU countries to reach an agreement as early as 2026 to ensure that governments and businesses can plan their expenditures before the new budget takes effect in January 2028.
Berlin is also taking political risks into account: elections are scheduled to take place in France, Poland, and Italy in 2027, which could complicate further budget negotiations.
The debate over the EU’s new financial plan will center not only on the total amount of spending but also on the allocation of funds among key areas—ranging from agriculture and regional policy to defense, digitalization, and support for economic competitiveness.
