German Chancellor Friedrich Merz warned that Germany and several other member states could reject the European Union’s proposed long-term financial package ahead of the EU Leaders’ Summit in Brussels.
Speaking to reporters before negotiations on the next EU budget cycle, Merz said, “The current proposal is far too high in terms of the headline figures. A new proposal must be put on the table, and then we should discuss the structure of revenues and expenditures. The figures need to be reduced.”
Merz noted that several other EU member states share Germany’s position, adding, “This is not a majority, but we need to reach a unanimous agreement.”
“The EU Should Not Take on More Debt”
The German chancellor also stated that he would reiterate his call during the summit for the European Union not to increase its borrowing.
Expressing hope that member states would reach a compromise on the budget during the second half of 2026, Merz emphasized the importance of making a decision this year to ensure overall budget predictability and planning certainty.
New Financial Framework Tops Summit Agenda
The main topic on the second day of the summit, attended by the heads of state or government of all 27 EU member countries, is the bloc’s future budget framework.
On the first day, leaders discussed support for Ukraine, competitiveness, Europe’s economic security, and relations with China. Today, they are focusing on the new Multiannual Financial Framework (MFF) for the 2028–2034 period.
The European Commission has proposed increasing the EU budget to approximately €2 trillion in the next funding cycle and making it more flexible than under the current structure.