Germany rejects EU budget proposal as ‘unaffordable’

Anabelle Colaco
02 Jul 2026, 14:52 GMT+10

Germany is pushing for a major reduction in the European Union’s proposed 2028-2034 budget, warning that the current 2 trillion-euro plan is too expensive and unlikely to win approval from member states
Berlin is demanding a 400 billion euros (US$456 billion) cut to the European Commission’s proposal, according to an internal government document
The EU budget, known as the Multiannual Financial Framework, requires unanimous approval from all 27 member states

BERLIN, Germany: Germany is pushing for a major reduction in the European Union's proposed 2028-2034 budget, warning that the current 2 trillion-euro plan is too expensive and unlikely to win approval from member states.

Berlin is demanding a 400 billion euros (US$456 billion) cut to the European Commission's proposal, according to an internal government document seen by Reuters on June 30.

The document described the current plans as "unaffordable" and warned that, "as it stands, an agreement is impossible."

The EU budget, known as the Multiannual Financial Framework, requires unanimous approval from all 27 member states. Germany's opposition therefore signals a difficult negotiation ahead for the bloc.

Germany is the EU's largest net contributor and has raised concerns about the scale of the proposed seven-year budget. The current EU budget for 2021-2027 stands at 1.3 trillion euros.

Berlin argues that even after its proposed €400 billion reduction, the next budget would still be 27 percent larger than the current one. Germany's annual contribution would rise to more than 50 billion euros under the plan.

Chancellor Friedrich Merz has urged EU member states to reach an agreement this year to provide planning certainty before the new budget takes effect in January 2028.

The push for an early deal also comes ahead of major elections expected in France, Poland and Italy in 2027.