German Chancellor Friedrich Merz (CDU) has categorically rejected proposals to increase the European Union's budget for the years beginning in 2028. "Europe must make do with the money we have," Merz stated on Friday during the EU summit meeting in the Cypriot capital of Nicosia. "We will have to set new priorities," he added.
Germany, which contributes the largest share to the EU budget, firmly opposes any increase in contributions. Merz also renewed his rejection of new joint EU debt. "This means that we will also have to reduce European budget expenditures elsewhere," the Chancellor explained.
The debate at the summit in Cyprus serves as an initial orientation for EU leaders. In June, heads of state and government are expected to discuss concrete figures for the first time. A final decision on the budget framework for the period beginning in 2028 is not anticipated until next year.
Dutch Prime Minister Rob Jetten expressed support for Merz's stance. "The volume of this budget must be significantly reduced," he said in Cyprus. If the budget is reduced, however, funds from existing programs will need to be cut, particularly if the EU simultaneously plans to increase spending on industrial development and security.
Numerous EU countries are drawing red lines around agricultural and regional development funding. Payments to farmers represent the most important budget item, said Irish Prime Minister Micheál Martin. His Latvian counterpart Evika Silina expressed similar views regarding the protection of agricultural subsidies.
The competing demands highlight the difficult negotiations ahead as EU leaders attempt to balance fiscal restraint with calls for increased spending on security and industrial competitiveness in an increasingly challenging geopolitical environment.
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