Germany Criticizes Cyprus's EU Budget Cut Proposal

BERLIN — German Chancellor Friedrich Merz's government sharply criticized a Cypriot proposal to trim the EU’s long-term budget on Friday, describing the plan as “unaffordable” and “unbalanced.”

The Cypriot government earlier this week laid out a plan for a 2 percent (€32.8 billion) cut to the European Commission’s proposal for the 2028-2034 budget. The bloc's 27 leaders are set to discuss the proposal by Cyprus — which currently holds the presidency of the Council of the EU — during a summit in Brussels next week.

“I don’t think I need to go into detail to explain that this cannot serve as a basis for an agreement for us at all," a senior German government official close to the chancellor told reporters during a briefing on Friday in Berlin. "The negotiating framework is unaffordable, and it is also unbalanced," the official added.

"We will not agree to either an unaffordable or an unreformed multi-annual financial framework,” the official also said, speaking on condition of anonymity to frankly discuss divisions within the EU.

Merz's government has long advocated substantial cuts to the EU budget across all policy areas, though it has stopped short of specifying concrete targets. Berlin has called for a clear prioritization of spending on defense and competitiveness, while seeking savings in areas such as agriculture and cohesion funding.

Merz reinforced that position in a speech to lawmakers in Berlin on Thursday, arguing that the EU would struggle to justify higher budget spending to voters while national governments are tightening their own finances.

"Compared to the proposals currently on the table, we need truly significant changes across the board," Merz said. "Incidentally, in all European countries, very tough efforts are often being made to consolidate national budgets. The citizens of our country and our continent rightly expect Brussels to exercise restraint as well — in terms of both money and personnel."

German government officials briefing reporters on Friday said Berlin was keen to conclude negotiations on the EU’s long-term budget this year, citing elections in major member countries such as France and Spain next year that could complicate efforts to reach a deal.

At the same time, the official speaking on condition of anonymity stressed that the current proposal “doesn’t even bring us close to a landing zone,” arguing that it would now be up to Ireland, which is due to take over the rotating Council presidency in July, to table a revised proposal if the EU is to meet its target of finalizing the budget by the end of 2026.