German Chancellor Friedrich Merz said he expects difficult negotiations ahead on the next EU budget, following Germany’s rejection of the Commission’s initial proposal.
“Starting next year, we will be faced with extremely difficult negotiations,” Merz said at a press conference in Berlin.
On Wednesday, the European Commission presented plans for a two-trillion-euro ($2.3-trillion) long-term budget that aims to boost the bloc’s competitiveness and defence capabilities.
“Germany already finances around a quarter of the European budget, so our options to do more here are very limited,” Merz said.
The chancellor also dismissed giving the European Union new borrowing powers modelled on the bloc’s response to the COVID-19 pandemic. “The pandemic borrowing scheme was an exception and that must not become the rule,” Merz said.
Government Spokesman Stefan Kornelius responded directly to the Commission’s proposal on Wednesday, saying they were “not acceptable at a time when all member states are making considerable efforts to consolidate their national budgets.”
Germany has also signalled its opposition to additional taxes on companies proposed by Brussels, which would flow directly into the EU’s coffers.
