The European Union’s next seven-year budget has become a point of contention between Germany and France, with the two countries at odds over proposed cuts. The EU aims to reach a deal by Christmas, as any delay would push talks into a fraught election year.
According to the report, the European Commission has proposed a 2028-2034 budget worth nearly two trillion euros, a significant increase from the 1.2 trillion euros allocated for the 2021-2027 framework. The draft covers the period from 2028 through 2034.
Germany, together with Austria, Denmark, Finland, the Netherlands and Sweden, is pushing for reductions that would total several hundred billion euros. The coalition of these six states argues that the current fiscal outlook requires tighter discipline.
France, the bloc’s second-largest economy and a net contributor, contends that sufficient resources are essential to meet rising challenges across the Union. A French presidency official added that investment in farming and in industrial competitiveness is required to keep the European economy on par with competitors from the United States and China.
Read Also: Macao fireworks contest returns with debut drone show
French President Emmanuel Macron has spoken out against demands for massive cuts, stating that “we need an ambitious European budget” to support EU priorities, including defence.
Divided Europe
Europe is deeply divided on the issue, with 17 countries from southern, central and eastern regions forming a group known as the “Friends of Cohesion” to seek greater funding for agriculture and regional development.
The main concern for the so-called “frugals” is that the proposed budget represents an increase of around 60 percent at a time when member states are tightening their belts.
Election timing and fiscal pressure heighten budget deadline risk
The risk of missing the December deadline has grown, especially after Spain announced a snap election for the coming month. In absolute terms, the EU does not need to agree the budget this year, as the final legal deadline is the end of 2027.
Read Also: Smartphones on tables hurt student focus, study finds
Germany and five other so-called “frugal” members voiced strong opposition in August, criticizing a high bloc budget amid what they described as painful fiscal consolidation. An official said, “The super-frugals want sweeping cuts and insist on retaining their rebates, effectively weakening the budget.” Chancellor Friedrich Merz faced political strain as the far-right AfD gained ground, while in France far-right leader Marine Le Pen advocated cutting the French contribution to curb national debt.
Alternative Revenue Sources
The warnings from European officials are stark, with a senior European diplomat stating that “there is a shared sense of urgency around the need to do this” and that alternatives are not being considered at this stage.
Saturday’s proposal will set the stage for a meeting between EU leaders in Brussels next week, where the battle over the budget will continue. The meeting between EU leaders in Brussels next week will bring together heads of state and government to negotiate the final text.
