Germany rejects EU’s proposed €2 Trillion budget for 2028-2034

The German government rejects the draft EU budget for 2028 in its current form. The significant increase in the budget planned by the EU Commission is "unacceptable at a time when all member states are making considerable efforts to consolidate their national budgets," said German government spokesperson Stefan Kornelius on Wednesday evening in Berlin. "Therefore, we will not be able to accept the Commission's proposal," he added.

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The EU Commission had previously announced that it intends to increase the next Multiannual Financial Framework (MFF) to around two trillion euros. The draft budget, with €451 billion, includes increased spending on competitiveness, which will be used to invest in clean technologies, digital technology, and biotechnology, as well as to promote science.

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Kornelius emphasized that Europe is "facing historic challenges to which the next financial framework must provide a response." The European Union must "improve its competitiveness and become defense-ready" so that Europe is "capable of acting globally."

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In addition to the budget increase, the German government, according to its spokesperson, is also concerned about the additional corporate taxation proposed by the European Commission. This proposal "does not have our support," Kornelius made clear. However, there was agreement for the European Commission's fundamental reform approach and "the alignment of the budget with new priorities." "This course is the right one to make Europe strong for the future," explained the spokesperson for Chancellor Friedrich Merz (CDU).

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The Commission's proposals form the basis for negotiations between the 27 EU countries and the European Parliament over the next two to three years. For the EU member states, the draft budget in its current form would mean higher spending, despite cuts and the merging of individual budget pots. 

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According to the Commission, these expenditures correspond to 1.26 percent of European gross national income. In the current budget, they amount to 1.13 percent, corresponding to a budget of €1.2 trillion for the years 2021 to 2027.

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