One week before the EU summit in Brussels, Chancellor Friedrich Merz (CDU) has levelled sharp criticism at the European Commission's budget planning. The existing proposal for the EU's multiannual financial framework covering 2028 to 2034 requires "truly significant changes in all areas," Merz said on Thursday in a government statement to the Bundestag. "A fundamental modernisation of the European budget is indispensable."
Merz pointed out that many countries across Europe are undertaking "often very hard efforts to consolidate public finances." Citizens in Germany and across Europe could "rightly" expect the EU to make comparable efforts, he said.
New European debt is "no solution," the Chancellor stated. "Excessive debt threatens sovereignty and limits room for manoeuvre." He warned that some countries within the EU are already spending more money on interest payments than on defence due to their "immense levels of debt."
The EU summit on 18 and 19 June is intended to mark the starting point for negotiations over the future budget. The European Commission proposed a total budget of two trillion euros for the period from 2028 to 2034 last year, a significant increase compared to the current financial framework.
Merz argued in the Bundestag in favour of deploying shared resources for shared investments, for sovereignty, competitiveness, and defence. "These are the priorities we must set now," he said. With reference to the current proposals, he added: "We will not meet the challenges of the 21st century with a budget from the 20th century."
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