German chancellor ties EU funding to deeper cuts in bureaucracy

During a gathering of EU heads of state and government, German Chancellor Friedrich Merz criticized the slow progress on competitiveness and called for more decisive action on reducing red tape. He proposed that cutting bureaucracy be made a permanent focus of EU summit programmes to monitor problems and implement corrective measures. Merz emphasized that without substantial deregulation, additional EU financing would lack justification.

He also dismissed a proposal from the United States to relocate roughly €210 billion of frozen Russian assets, stating that Europe should retain control over those funds. The remarks came after a prior closed-door meeting at Alden Biesen Castle in Belgium, where issues such as market barriers and dependence on third-country supplies were discussed with figures like Mario Draghi and Enrico Letta.