Friedrich Merz Leads EU Frugals in Budget Cut Push

German Chancellor Friedrich Merz hosted leaders from the Netherlands, Denmark, Austria, Finland, and Sweden in Berlin on Thursday to coordinate a push for significant cuts to the European Union's proposed 2028-2034 budget. This group of net contributor nations argues that the European Commission's €2 trillion proposal is "unaffordable" and must be scaled back by several hundred billion euros to align with fiscal consolidation within member states.

The proposed Multi-annual Financial Framework allocates nearly €900 billion for agriculture, €400 billion for competitiveness and research, €130 billion for defense, and up to €100 billion for Ukraine. While Merz and his allies demand a balanced reduction across all spending categories, member states including Spain and Italy oppose the cuts.

European Council President Antonio Costa is currently visiting member states to gauge support for the proposal. Leaders aim to finalize the budget blueprint by the end of the year.