Germany, the Netherlands, Sweden, Denmark, Austria and Finland demand cuts to the EU budget by hundreds of billions of euros

The authorities of Germany, the Netherlands, Sweden, Denmark, Austria and Finland have put forward an ultimatum on the new long-term budget of the European Union, demanding its reduction by hundreds of billions of euros, the Financial Times writes, citing a statement from the countries that was at its disposal.

EU countries must, by the end of this year, agree on the final version of the new seven-year budget, which will operate in the community from 2028 to 2034. Ireland, which holds the EU Council Presidency in the second half of 2026, is due to present a new draft budget in the fall.

"German Chancellor Friedrich Merz and five other EU heads of state have threatened to block agreement on the bloc's budget for the next seven years unless spending cuts of 'hundreds of billions' of euros are made," the newspaper said.

According to the Financial Times, the leaders of Germany, the Netherlands, Sweden, Denmark, Austria and Finland want to redirect resources to the military-industrial complex and innovative companies, while reducing funding for the agricultural industry and poorer regions of the EU, citing economic and security challenges.