German Chancellor Friedrich Merz has joined forces with leaders from five other EU countries to demand significant cuts to the European Commission’s proposed long-term budget, calling it unaffordable in the current economic climate.

German Chancellor Friedrich Merz, alongside the leaders of Denmark, Finland, the Netherlands, Austria, and Sweden, is challenging the European Commission’s proposed multi-year financial framework. The Commission’s plan, which seeks to increase the budget for 2028-2034 by up to 60 percent, has been labeled as ‘simply unaffordable’ by Merz. In a confidential meeting held in Berlin, Merz emphasized the need for ‘drastic cuts’ across all areas of spending, stating that the proposed budget fails to reflect the financial realities faced by member states.

The six countries represent approximately 40 percent of the EU’s overall budget contributions and are responsible for 70 percent of bilateral aid from EU states to Ukraine, according to Merz. As such, the group argues their position carries significant weight in the negotiations set to begin in Brussels this October. Their united stance calls for both fiscal restraint and reforms, with Merz underlining the importance of prioritizing the EU’s competitiveness in the global market. He criticized the Commission’s proposal as being out of step with the challenges of the 21st century, urging a shift toward a more realistic financial plan.

The proposed budget, totaling 1.76 trillion euros in 2025-adjusted terms, aims to fund initiatives ranging from defense capabilities and agricultural policies to education programs like Erasmus. However, Merz and his allies maintain that these ambitions must be tempered to ensure fiscal responsibility. The group intends to finalize their alternative proposal by the end of the year, setting the stage for potentially contentious negotiations with other EU member states and the Commission. The outcome will shape the EU’s financial direction for years to come.