Exclusive-Germany demands $450 billion cut to 'unaffordable' EU budget, document shows

By Andreas Rinke

BERLIN, ‌June 30 (Reuters) - ​Germany ​is demanding a €400 billion ($456 billion) cut to the European Commission's proposed ‌budget of €2 trillion for 2028-2034, warning that ⁠the current plans are "unaffordable," according to an internal ‌government document seen by ‌Reuters on Tuesday.

Because the EU budget, called Multiannual Financial Framework, requires unanimity among ​all 27 member states, Germany's sharp opposition signals a tough battle ahead, with ⁠Berlin warning in the document that "as it stands, an agreement ​is impossible."

As the EU's largest net contributor, Germany is alarmed by the ​proposed scale of the next ‌seven-year budget, which is a significant increase from the €1.3 trillion budget ⁠for 2021-2027.

Berlin argues that even with its proposed €400 billion trim, the budget would still be ⁠27% larger than the current one, pushing Germany's ​annual contribution to over €50 billion.

Chancellor Friedrich Merz has urged member states to seal a deal this year ‌to ensure planning certainty before the budget takes effect in January ‌2028, especially with major elections looming in ⁠France, Poland and ‌Italy in 2027.

($1 = ​0.8780 euros)

(Reporting by Andreas Rinke, writing by Maria Martinez, editing by Thomas ‌Seythal)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Micron's Taiwan unions threaten strike over bonus dispute
• After student's shooting rampage, Thai school reopens under tight security
• Russia hits port export facilities in Ukraine's Odesa region, Kyiv says