The EU budget: the battle for Europe's billions is fierce - Politics - SZ.de

Germany's Chancellor Friedrich Merz has firmly stated that the European Union should not increase its budget for the coming seven years, rejecting the proposed plan by the European Commission. According to Merz, the suggested budget would amount to around two trillion euros, including inflation. This stance aligns with several other countries within the EU, particularly those known as the "frugals," which include Germany, the Netherlands, Austria, Sweden, Denmark, and Finland. These nations contribute more to the EU budget than they receive in return and are pushing for significant cuts. Merz emphasized that the goal of negotiations was to reduce the overall spending volume by "several hundred billion euros." Despite this clear position, there is no guarantee that the final EU budget will be smaller than the commission’s proposal. The German delegation has made their stance very clear, but the outcome remains uncertain. The "frugals" face pressure from right-wing political forces in their respective countries. Negotiating compromises with wealthier nations appears difficult under these circumstances. For Merz, who is already facing challenges from the Alternative for Germany (AfD) party, accepting the commission’s proposal could lead to accusations of wasting taxpayer money. Similar sentiments are echoed in Sweden and Finland. On the other side of the debate, many countries benefit significantly from EU funds, particularly in agriculture, infrastructure, and regional development. The commission’s proposal suggests shifting funding priorities towards education, digitalization, defense, and security, potentially reducing support for farmers. Countries such as France, Spain, Italy, and Poland, which heavily rely on agricultural subsidies, are likely to resist these changes. With elections looming in these countries over the next twelve months, their negotiating positions are further constrained. Despite the intense discussions, no substantial progress was made by Thursday evening. Both sides remain entrenched in their positions, with the "frugals" aiming to demonstrate a firm stance without yielding to compromise. The situation highlights the deep divisions among member states regarding the future direction and financial allocation of the EU.