Merz seeks further cuts to new EU budget
The German chancellor still considers the compromise proposal for 2028–2034 too generous.
Follow-up to: EU countries clash over new long-term budget Tuesday, 13 October 2026, 20:30
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German Chancellor Friedrich Merz called on Wednesday for further cuts to the European Union’s next long-term budget. Merz said the proposal needed tightening in every area, while more money should go towards security and competitiveness. The issue is on the agenda for Thursday and Friday’s European summit in Brussels.
Merz made the remarks in a government statement to the Bundestag, one day before the European Council began. He said the financial negotiations were entering a decisive phase and that European funds needed to be directed more clearly towards priorities. He also wants less bureaucracy and a stronger European approach to unfair trading practices.
The issue concerns the EU’s multiannual financial framework for 2028 to 2034. The European Commission had proposed a budget of almost €2 trillion, equivalent to an average of 1.26 per cent of the EU’s gross national income. The budget funds agriculture, regional development, research, security and international cooperation, among other areas.
On 10 October, the Irish presidency of the Council presented an amended negotiating proposal. It amounts to €1.62 trillion: 8 per cent less than the Commission’s proposal, but still 30 per cent more than the current multiannual financial framework. According to Ireland, agriculture and cohesion policy would remain largely protected, while investment in competitiveness and security would be expanded.
For Merz, that reduction does not go far enough. Germany is among the member states that contribute more to the EU budget than they receive directly from it. The German government therefore wants a smaller overall budget and sharper choices. At the same time, Merz wants Europe to do more on defence, technological development and protection against trading practices that disadvantage European companies.
This brings different groups within the EU into conflict. Net contributors, including Germany and the Netherlands, want to limit their contributions. Other member states fear that lower spending would come at the expense of agriculture, regional support or investment in poorer areas. Choices in the Irish proposal are also sensitive: according to Reuters, research, climate policy and clean mobility are among the areas receiving less of an increase than in the original Commission plan.
An agreement is not yet imminent. The EU countries must approve the financial framework unanimously, after which the European Parliament must also give its consent. The member states are aiming for a political agreement by the end of 2026, so that the legislation can be completed in 2027 and European programmes can continue without interruption from January 2028.
Thursday and Friday’s summit therefore need not produce a final decision. It can, however, clarify how much support there is for Germany’s demand for further cuts and which areas of spending the member states want to protect. As another net contributor, the Dutch government will be in a similar negotiating position to Germany, but will not necessarily have the same priorities.
One story, several perspectives
What is established
- Merz is calling for further reductions and sharper priorities in the EU budget.
- The Irish compromise proposal amounts to €1.62 trillion for 2028–2034.
- The proposed budget includes funding for agriculture, cohesion, research, security and competitiveness, among other areas.
- The member states are aiming for an agreement by the end of 2026.
Left
Arguments The EU should invest enough collectively in climate, research, social cohesion and less prosperous regions. Further cuts could widen differences between member states and weaken the European response to climate change and inequality.
Values Solidarity, public investment, social equality and international responsibility.
Consequences A smaller budget could lead to less support for regions, the agricultural transition and climate policy, while national governments may not always have the resources to compensate for this.
Centre
Arguments The EU must protect its existing commitments while making room for security, competitiveness and new risks. A compromise involving targeted savings and new European revenues is more plausible than a major expansion or broad across-the-board cuts.
Values Administrative feasibility, financial sustainability, European cooperation and a balance between interests.
Consequences A workable compromise could provide financial certainty after 2027, but is unlikely to satisfy any group completely.
Right
Arguments The EU should limit itself to core tasks and handle national taxpayers’ money more frugally. Security, defence and economic competitiveness should take priority over expanding subsidies and creating new European programmes.
Values National responsibility, lower burdens, efficient government and security.
Consequences A smaller budget could limit the contributions of net contributors, but could also mean that the EU responds less quickly as a bloc to crises and economic competition.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The article’s core is based directly on Merz’s statement and official EU documents. The amounts, percentages and procedural steps were checked against primary sources and Reuters/AP.
- confirmed On 14 October, Friedrich Merz called for further cuts to the EU budget for 2028–2034. — The Bundestag and the German government describe his government statement and call for further savings. source
- confirmed The European Commission proposed a budget of almost €2 trillion. — The Council of the EU cites a Commission proposal of almost €2 trillion for 2028–2034. source
- confirmed The Commission’s proposal amounts to an average of 1.26 per cent of EU GNI. — This percentage appears in the Council’s explanation of the Commission proposal. source
- confirmed The Irish presidency proposed a budget of €1.62 trillion. — The Irish EU presidency website explicitly gives this amount. source
- confirmed The Irish proposal is 8 per cent below the Commission proposal and 30 per cent above the current multiannual financial framework. — Both percentages appear in the official Irish proposal. source
- confirmed Research, climate policy and clean mobility receive smaller increases in the Irish proposal than in the Commission plan. — Reuters describes these areas as being affected by the Irish cuts. source
- confirmed The EU budget must be approved unanimously and then also by the European Parliament. — Reuters describes unanimity among the member states and the role of the European Parliament. source
- confirmed An agreement by the end of 2026 is needed to complete the legislation in 2027 and ensure funding continues without interruption from January 2028. — The Council of the EU gives this timetable as the aim of the negotiations. source
Editor's note
What is certain is that on 14 October Merz called for further savings and sharper priorities. The Irish proposal stands at €1.62 trillion; the precise outcome of the negotiations and the allocation per programme have not yet been determined.Sources
- Kanzler Merz pocht auf weitere Einsparungen beim neuen EU-Haushalt — Deutscher Bundestag
- Regierungserklärung von Bundeskanzler Merz — Bundesregierung Deutschland
- Irish Presidency publishes its Proposal for the EU’s Long-term Budget — Irish Presidency of the Council of the EU
- The EU's long-term budget for 2028–2034 — Council of the European Union
- Political tensions rise as EU faces budget challenges — AP News
- EU leaders to clash over long-term budget, no quick deal in sight — Reuters via MarketScreener
The story so far
- Tuesday, 13 October 2026, 20:30 EU countries clash over new long-term budget
- Thursday, 15 October 2026, 04:57 Merz seeks further cuts to new EU budget (this article)