Germany is demanding a €400 billion cut in the EU budget, which it considers "unsustainable".

Germany is calling for a massive reduction in the next European Union budget, estimated at 2 trillion euros for the period 2028-2034. According to an internal government document seen by Reuters, Berlin is demanding a cut of around 400 billion euros, deeming the European Commission's current proposal "unaffordable".

This future multiannual financial framework, which requires the unanimous agreement of the 27 member states, is already shaping up to be a major point of contention between European capitals. In this document, the German government warns that, as the discussions stand, an agreement appears impossible, suggesting lengthy negotiations ahead.

As the largest net contributor to the EU budget, Germany is concerned about the significant increase in spending proposed by the Commission. The current draft represents a substantial rise compared to the previous budget, which was set at approximately €1.3 trillion for the 2021-2027 period.

Even with the €400 billion reduction sought by Berlin, the EU budget would still be estimated to be around 27% higher than the previous financial framework. This would also imply a significant increase in Germany's contribution, which could exceed €50 billion per year.

German Chancellor Friedrich Merz is calling on member states to reach an agreement this year to ensure some budgetary stability before the new budget comes into effect in 2028. He also points out that the elections scheduled for 2027 in France, Poland and Italy could further complicate negotiations within the European Union.