Overview
- EU leaders met in Brussels on Thursday as Chancellor Friedrich Merz publicly rejected the European Commission’s near‑€2 trillion 2028–2034 proposal and said the plan is not affordable.
- Germany is leading a coalition of ‘frugal’ states that seeks cuts of “hundreds of billions” and opposes new EU‑level revenues such as a corporate levy or shared debt.
- An Irish compromise box that trims the Commission plan by roughly €159 billion has been judged insufficient by Berlin and other net contributors, leaving talks deadlocked.
- Critics warn that deeper cuts or a smaller deal would remove about €30 billion from climate and environment programmes and shrink cohesion and social funds that support farmers and poorer regions.
- The budget requires unanimous approval, NextGenerationEU repayments begin in 2028, and leaders expect difficult, possibly extended negotiations with further meetings planned before year‑end.