Germany and five other EU donor nations are urging significant reductions to the European Commission’s proposed budget, citing the need for financial moderation in challenging economic times.

German Chancellor Friedrich Merz, alongside leaders from Denmark, Finland, Austria, the Netherlands, and Sweden, has demanded substantial cuts to the European Union’s upcoming budget framework. Speaking after a closed-door meeting in Berlin, Merz criticized the European Commission’s plan to expand the budget by up to 60 percent, calling it ‘simply unaffordable’ given current economic restraints. These donor nations collectively contribute 40 percent of the EU budget and argue that greater restraint is necessary in light of ongoing efforts across the bloc to consolidate national budgets.

The group proposed scaling back commitments in the new financial plan by hundreds of billions of euros, emphasizing the need for comprehensive cuts across all sectors. In a joint statement, the leaders called for a budget that prioritizes security, migration, sovereignty, and competitiveness while urging ‘realism and reforms.’ Merz reiterated the donor nations’ willingness to support critical EU and bilateral commitments, including aid for Ukraine, but stressed that extravagant increases in funding were out of step with current fiscal realities.

Additionally, the coalition strongly opposed new EU debt issuance and advocated for streamlining operations within existing personnel limits. The joint declaration affirmed that the EU’s budget should reflect strategic priorities without expanding beyond sustainable limits. With the European Commission proposing a two-trillion-euro budget for 2028–2034, a significant rise from the current 1.2 trillion framework, these nations plan to advance their united position during EU negotiations starting October, aiming for a resolution by year-end.