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German Chancellor Merz urges deep EU budget cuts, stresses competitiveness and defence

Chancellor Friedrich Merz told the European Council that the EU’s common budget must be cut sharply, with competitiveness and defence as top priorities.

At a European Council meeting, German Chancellor Friedrich Merz praised the Irish presidency’s draft but said it remains far from the required target. He insisted that the Union’s common budget must be reduced dramatically because many member states cannot sustain existing contribution levels. Merz highlighted competitiveness and defence as the core priorities for any future financial framework.

He cautioned that the upcoming negotiations will be very tough and may not reach a conclusion in the immediate term. Despite the challenges, he noted progress has been made, albeit not as quickly as he had hoped at the start of the year. The remarks underscore the growing tension over EU financing and strategic spending.

Why it matters

The stance could reshape EU spending, affecting member states' contributions and future policy focus.

In this story

EU budgetbudget cutscompetitivenessdefencenegotiationsIrish presidencyFriedrich Merz
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