EU leaders are negotiating the budget - Germany wants to make cuts

How can bureaucracy be reduced? Who will soon be allowed to join the EU? How to help Ukraine during a harsh winter? And what about the crisis in the Middle East and the resulting rising energy prices for European consumers and companies?

Once again, the EU heads of state and government have a very busy agenda when they meet in Brussels today. For the first time in a long time, the summit is scheduled to last two days instead of one. The biggest point of contention could come up this afternoon: When it comes to money, as we all know, the fun comes to an end.

“We have the multi-annual financial framework, the EU budget, at the top of the agenda,” said Chancellor Friedrich Merz (CDU) in advance. Merz has been talking about the EU budget for months. Germany is after all the largest net contributor among the 27 countries and pays around a fifth of the budget. “However, the resources available to us are limited,” said Merz. “We will therefore not be able to avoid limiting the current proposal again in all areas.”

Up to two trillion euros budget

To put it very unromantically, the European Union is a huge balancing machine of interests: member states, the EU Commission and the EU Parliament submit proposals for a budget for the period 2028 to 2034, i.e. seven financial years.

Then negotiations take place between the institutions. The Commission and Parliament have already presented their proposals. The Commission ends up with around 1.8 trillion euros, the Parliament with a good two trillion - for seven years.

The Irish Council Presidency has now come forward with a proposal that will be discussed by the member states, which envisages some cuts. But not enough for the Chancellor. He had already said before: "Not having a new financial framework is by far the most financially advantageous solution for Germany, but we don't want it because that would severely restrict Europe's ability to act."

Critics demand pragmatism from Merz

A statement that puzzled some negotiators. If the EU does not agree on a new budget, the one from the last year of the previous period, i.e. 2027, would be continued. There would also be an adjustment for inflation, but above all there would be great political damage and a loss of confidence in the financial markets.

Chancellor Merz is playing with fire, criticizes SPD MEP Matthias Ecke. "That's why Chancellor Merz should now finally take the position that every German chancellor has taken before him: enable a compromise in the middle of the member states and not play through the radical position."

European Parliamentarians in particular object that the EU budget, adjusted for purchasing power, is not increasing that much compared to the previous period - as Merz always claims. And Europe should also fulfill more and more tasks: defense, foreign policy, completing the internal market. That just costs.

Saxony-Anhalt receives the most EU money per capita in Germany

“The EU budget is about twice as big as the budget of North Rhine-Westphalia or other larger federal states,” points out Green MEP Rasmus Andresen.

The EU budget earmarks large amounts for area bonuses in agriculture as well as research funds, for example for the Horizon Europe program. But regional development is also particularly important. Many poorer regions have benefited from this in recent years. Germany less so, but here too, EU funds are used to renovate schools, build roads and purchase medical technology in clinics.